Remittance inflow rises 16pc

Remittance inflow in the first quarter of the current fiscal year rose 16.07 percent year-on-year.

The total inflow during the July-September period stood at $4490.44 million in fiscal year 2019-20 against $3864.89 million during the same period last fiscal year, according to the Bangladesh Bank data released on Tuesday.

During the Eid-ul-Adha in September this year, remittance inflow increased by over 27 percent to $1448 million against $1139.66 million during the same month last year.

Generally, remittance inflow reduces after the Eid, but this time it did not happen, Bangladesh Bank officials told The Business Standard.

Bangladeshi expatriates were encouraged to send home money through the banking channel as they got good returns for a strong position of taka against depreciated dollar, they said.

The inter-bank exchange rate of dollar against taka, in September this year, hovered around Tk84.50. The dollar exchange rate was Tk83.75 during the same month last fiscal.

The central bank officials also said expatriates were however happy for the government's announcement of two percent in remittance incentive. The government is yet to fix how it will be given to them, though.

The Bangladesh Bank's move to curb illegal "hundi" also encouraged expat workers to send money through the formal banking channel, the officials said, adding that this has boosted the remittance inflow.

To enhance the remittance growth, the central bank has already integrated a mobile banking channel with the commercial banks to allow expatriates to remit through the legal network.
bKash, the most popular mobile banking platform, has joined hands with different global money exchanging companies to bring in remittance through the alternate payment channel.