Remittance inflow jumps by $406 million YoY in first 20 days of August
The central bank data also reveals that in just one day, on 20 August, expatriates sent $109 million
Remittance inflow into Bangladesh surged by $406 million in the first 20 days of August, marking a substantial 36% year-on-year increase.
The country received $1.5 billion in remittances by 20 August, compared to $1.12 billion during the same period last year, Bangladesh Bank spokesperson Mezbaul Haque told The Business Standard.
The sudden increase is largely attributed to expatriates sending money through banking channels, according to industry insiders.
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Central bank data also reveal that on 20 August alone, expatriates sent $109 million.
According to the data, Bangladesh received $1.13 billion in remittances in the first 17 days of this month, with more than $300 million arriving in the following three days.
Senior officials at several banks said due to the student-led uprising that resulted in the ouster of prime minister Sheikh Hasina on 5 August, followed by subsequent violence and law and order issues across the country, normal operations of banks were disrupted.
As a result, remittances did not flow in regularly during the first week of August. However, remittances have started to increase as the situation gradually normalises.
Commenting on the increase in the remittance dollar rate as one of the reasons for the surge in remittance flow, the managing director of a private bank said the Bangladesh Bank raised the official dollar rate by Tk2 to Tk120 a few days ago.
As a result, the dollar rate for remittances has also increased. Currently, banks are buying remittance dollars at Tk120.50 to Tk120.60.
Inward remittance inflow dropped to a 10-month low of $1.91 billion in July.
Year-on-year, remittance inflow in the country fell by 3% in July. The figure stood at $1.97 billion in the same month last year.
Bangladesh typically receives an average of $2 billion in remittances sent by expatriates.
The inflow of money sent by expatriates fell to $1.33 billion in September last year due to the central bank's restrictions on the dollar rate. Since then, remittance inflows have not fallen below $1.9 billion in any month.
The decline in July's remittance inflow is attributed to the unrest sparked by the quota reform movement, a five-day internet blackout, and a three-day bank closure.
