Remittance inflow hit $14.34 billion during the January-November period of this year, up 15.88 percent over the same period of the previous year, according to Bangladesh Bank (BB) data.
The flow was $12.37 billion during the same period in 2017. Stronger dollar rate against taka and Bangladeshi expatriate workers remitting more money through formal channel contributed greatly to the steady rise, experts said.
The local currency taka depreciated by Tk 1.60 or almost 2 percent to Tk 83.90 on Monday against US dollar from Tk 82.30 the same day a year earlier, the BB data shows. However, the remittance inflow has decreased by 4.92 percent to $1.18 billion in November compared with the previous month’s amount of $1.24 billion. The figure was $1.21 billion in November 2017.
A senior BB official said the central bank has taken a series of measures to encourage the expatriate workers to send their money though formal channels, especially using banking channel.
The central bank has strengthened their supervision to check ‘hundi’, the illegal channel used to move funds, contributing to the rise in remittance inflow, he said. To increase the inflow of remittance, a total of 29 exchange houses are operating all over the world setting up 1,215 drawing arrangements abroad, he added.
The BB earlier took a series of measures to encourage the expatriates to send their hard-earned money through the formal banking channel to help boost the country’s foreign exchange reserve. Bank Asia Managing Director and CEO Md Arfan Ali told Bangladesh Post that the remittance inflow decreased significantly in 2016 and 2017 fiscal years, because of oil price hike in global market side by side expatriate workers opting to remit money through informal channel like ‘hundi’.
“The remittance inflow has picked up upward trend for last several months in the wake of a series of measures taken by the government.”
Ali said agent banking is doing very good job by giving in the door-to-door remittance service, which will encourage expatiates to send their money through formal channel.