Remittance inflow dropped to 10-month-low in July

Infographic: TBS

Inward remittance inflow has dropped to the lowest point in 10 months at $1.91 billion in July.

Year-on-year, the remittance inflow in the country fell by 3%, Bangladesh Bank spokesperson Mezbaul Haque confirmed to The Business Standard. In July last year, remittance inflow stood at $1.97b. 

According to the Central Bank, Bangladesh usually 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. Remittance inflows have not fallen below $1.9 billion in any month since then.

Remittance inflows and import LC openings declined over the past week due to the unrest surrounding the quota reform movement, a 5-day internet blackout, and a three-day bank closure.

Several viral videos show Middle Eastern workers being instructed not to send remittances through official channels, protesting the quota reform unrest and communication issues due to the internet blackout. Meanwhile, a video of a state minister and leaders urging expatriates to use legal channels for remittances is also circulating.

In addition to the decrease in remittances through formal channels, hundi transactions have surged over the last week, the banker said.

Meanwhile, two days after verbally instructing banks to collect remittance dollars at a higher rate, the Bangladesh Bank yesterday directed them not to pay more than the previously fixed rate at Tk118 and has warned of punishment for violating this directive without issuing a show cause notice, on Wednesday.

However, a Bangladeshi expatriate said on Wednesday that the popular exchange house MoneyGram was offering Tk120.58 per dollar of remittances. Additionally, Western Union was rating the remittance dollar at Tk119.50.