Stronger dollar lifts remittance inflows

Staff Reporter :

Remittance inflows have demonstrated robust performance since August, with expatriates sending over $1.95 billion in the first 26 days of October. According to data published by Bangladesh Bank (BB) on Sunday, the average daily remittance stood at $75 million.

Experts attribute this increase in remittances to the central bank’s decision to raise the dollar price by 2.5 per cent. Shortly after the interim government assumed office, the dollar rate was adjusted upward by Tk3, bringing it toTk120.

There is a noted correlation between the dollar rate and remittance flows; a dollar rate closer to the market value incentivizes expatriates to send remittances.

As of October 26, remittance data indicates that over $547.30 million was received through state-owned banks, $99.90 million through a specialized bank (Krishi Bank), $1.29 billion through private banks, and $5.12 million through foreign banks.

Notably, nine banks did not receive any remittances during this period.

These included the state-owned Bangladesh Development Bank (BDBL), the specialized Rajshahi Krishi Unnayan Bank (RAKUB), and private banks such as Community Bank, Citizens Bank, ICB Islamic Bank, and Padma Bank.

Among foreign banks, Habib Bank, the National Bank of Pakistan, and the State Bank of India recorded no remittance inflow.

Central bank data shows that remittance inflow for August reached $2.22 billion, marking a 39 per cent year-on-year increase.

However, Bangladesh’s remittance inflow had dipped to a 10-month low of $1.90 billion in July, largely due to an internet blackout affecting expatriates’ ability to send funds amid the students’ quota reform movement.