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Remittances spike to $19.41b in 11 months

Published : 04 Jun 2023 10:29 PM | Updated : 04 Jun 2023 10:34 PM

The country’s remittance inflow has increased by about $217 million or 1.13 percent to stand at $19.41 billion in July-May in the current fiscal year 2022-23 over the previous fiscal.

The country’s remittances increased to $1.69 billion in May against the previous month. 

On an average $56.39 million came every day in May while $56.16 million came every day in April.

In April 2023, the remittance was $1.68 billion, down $350 million than the previous months. 

However, remittance in a single month this fiscal has crossed $2 billion to stand at $2.02 billion in March. Such trend of inflow of money increased by 29.29 percent in March over the previous month in February amounting to $1.56 billion. In March 2022, the remittance inflows was $1.86 billion.

Bangladesh Bank (BB) is expecting that the figure will increased further as expatriates are sending additional money for their families and relatives ahead of Eid-ul Adha festival.

On an average around $65.09 million came every day in March while $53.37 million came every day in February.

Remittances rose to $1.56 billion in February, up 4.47 percent over that in the corresponding period of the previous year that amounted to $1.49 billion. In February 2022, expatriates sent an average of $53.37 million every day.

A high official of the central bank said that various initiatives have been taken to increase remittances through banking channels. 

It is urged not to send remittances through Hundi or any other illegal means, he said, adding that the motivational messages are now working. 

Remittances are showing a good position at the beginning of this month, he mentioned. 

However, remittance flows witnessed a good start and stood at $1.95 billion in January 2023, the first month of the New Year, up about 16 percent over that in the corresponding period of the previous month that amounted to $1.69 billion. In January 2022, this figure was $1.70 billion.

After two consecutive months of heavy decline, the remittance returned to positive trend last November and continued the trend in December, the month of victory.

Remittance witnessed a rising trend and crossed $10 billion during the July-December period.

Remittance from expatriates, one of the main sources of foreign exchange reserves, has started to increase again after various measures taken by Bangladesh Bank, including tough steps against illegal hundi money transferring business.

In January 2023, expatriates sent on an average of $62.90 million every day.

In December, expatriates sent around $1.7 billion after various measures to increase expatriate income in banking channels. As part of its move, an average of around $56.66 million came every day in December.

Last November, expatriates sent $1594.70 million. An average of $53.10 million poured in every day. In the previous two months, October and September, $49.20 million and $51.30 million respectively came daily.

In the first two months of the current fiscal year 2022-23, in July and August, remittances came to the country in the amount of about $70 million per day.

Remittances stood at $2.09 billion in July, $2.04 billion in August, $1.54 billion in September and $1.52 billion in October in the current fiscal year 2022-23.

Economists and bankers said remittances returned to a positive trend in November, after declining for two consecutive months, due to various measures taken by the central bank.

As the trend turned more positive in December, relief began to return, they said, suggesting that the Central Bank should take tougher steps to ban hundi to increase remittances through legal channels.

Bangladesh Bank officials hope the amount of remittances will continue to increase in upcoming months.

However, a continued decline in remittance flows from expatriates increased in November.

Bangladesh received record $2.10 billion remittances in July, the first month of the fiscal year 2022-23, due to Eid-ul-Azha festival when expatriate Bangladeshis usually send home more money than at any other time.

The figure is the highest in 14 months and 12 percent higher than the $1.87 billion remittance the country received in the same month of the previous FY.

The country received $22.07 billion in remittances in 2021, which was higher than in any other year in the history of Bangladesh. This inflow was $21.78 billion in 2020 and $18.33 billion in 2019.