Bangladesh got $1.56bn in remittance in February

March 1, 2023

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Bangladesh received inward remittance of $1.56 billion in February, which was $1.95 billion in January.

Though the inward remittance flow decreased in February compared to January, the overall remittance flow rose in the first eight months of the current fiscal year FY23.

According to Bangladesh Bank (BB), in the first eight months Bangladesh received $14.01 billion in remittance, $574.86 million more than the same period of last FY22.

In FY22, Bangladesh received $13.43 billion in remittances in the first eight months.

The forex markets of Bangladesh are stable thanks to remittance inflow, and the forex reserves of Bangladesh bank stood at $32.3 billion as of Wednesday.

Expatriates, freelancers, and skilled professionals of Bangladeshi have contributed to the country by earning foreign exchange while the central bank struggling with LC liabilities to import essential commodities and industrial raw materials, sector insiders said.

Bankers said many import payments were deferred due to the dollar crisis.

For this, dollars coming from expatriates are being bought at a higher price than the fixed rate.

As a result, expatriate income increased. If the price limit of the dollar is removed, the crisis will go away, they say.

Bangladesh Bank spokesperson Mesbaul Haque told UNB that to increase remittance inflow, the central bank increased the exchange rate of US dollars for remittance.

In addition to a 2.5% hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said.

Banks will not cut any charge or fee for sending remittances through legal channels, he said.

Bangladesh Bank says that more than 40% of remittance of expatriate income is sent to the country through hundi.

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