Bangladesh receives $1.55b remittance in 19 days of October

Bangladesh received $1.553 billion in remittances during the first 19 days of October, averaging $87 million per day, according to the latest data from the Bangladesh Bank.

In comparison, remittances in the same period of September totaled $1.47 billion, indicating a significant boost in October's figures.

Bankers say since the formation of the interim government on 8 August, expatriates have significantly reduced the use of hundi for sending remittances.

Instead, they are now opting to send remittances through formal banking channels, even if it means waiting in queues. As a result, the country's remittance inflows have seen a considerable increase, they say.

They further noted that the surge in remittances has helped stabilise the dollar market, with the exchange rate holding steady at Tk120 since the fall of Sheikh Hasina's government on 5 August amid a mass uprising.

Previously, there was a consistent gap of Tk3-Tk4 between the rates offered by banks and the kerb market, but now both rates are aligned.

In October, the remittances came through various banking channels, with state-owned banks contributing $400.8 million and specialised banks accounting for $78 million. Private banks led the way, bringing in $1.0496 billion, while foreign bank branches in Bangladesh facilitated $4.1 million in transfers.

Additionally, the Bangladesh Bank reported that from 13 to 19 October, expatriates sent $546.30 million, while $561.9 million was received between October 6 to 12, and $424.7 million in the first five days of the month.

Forex reserves on the rise

Bangladesh's foreign exchange reserves are gradually increasing and stabilising, Bangladesh Bank Governor Ahsan H Mansur has said.

"The reserves, which had been depleting by $1.3 billion per month under the previous government, are now seeing a more positive trend," Governor Mansur said in an interview with UNB on 20 October.

"A significant amount has already been paid for fertilisers, electricity, and obligations to Adani-Chevron," he said.

In the past two months alone, the central bank has successfully reduced deferred payments from $2.5 billion to $700 million by paying off $1.8 billion in outstanding liabilities for energy and other essential services.

As of 8 October, Bangladesh's foreign exchange reserves stood at $19.82 billion as per BPM6 calculations, while the gross reserves reached $24.97 billion.

Besides, remittance inflows into Bangladesh surged by $1.07 billion in September, marking an impressive 80.22% year-on-year increase.

According to the Bangladesh Bank, the country received $2.40 billion in remittances last month, a significant increase from $1.33 billion in the same month last year.

Additionally, remittances in September increased by $180 million compared to the previous month, making it the highest inflow in the past three months.