The remittance inflow sustained its upward trajectory into August as Bangladeshi expatriates sent out $2.03 billion in the second month of the fiscal year with a 12.58 percent year-on-year rise.
In July, the country received $2.09 billion from expatriates, which was the highest in 14 months, while the daily average remittances received was $67.6 million.
Last month, the daily inflow was $65.7 million through the banking channel, according to the central bank data released on Thursday.
Bangladesh Bank spokesperson Md Serajul Islam credited steps taken by the government and the central bank for the increase in remittances.
Expatriates do not require any documents now to send money, he noted. “They are trying to send more money to the country by cutting their expenses as the price of the dollar is high in the market.”
And the process of discouraging Hundi [illegal channels] and expansion of Authorised Dealer branches of 30 banks is underway. If the AD branch increases, it will be easier to buy and sell dollars. This has played a role in increasing the flow of remittances.”
In the 2021-22 fiscal year, remittances from expatriates slipped by 15.12 percent year on year. In the previous fiscal year 2020-21, remittances grew by 36.1 percent to $24.78 billion.
The dollar price has been on the rise for several months recently due to a supply crisis. Besides the banks, the dollar price also rose in the open market. Banks are buying the foreign currency at a higher rate from foreign exchange houses to serve customers.
On Jun 30, Bangladesh Bank relaxed the managed floating rate control on the value of the dollar.
Currently the dollar-taka exchange rate in banks is around Tk 106 and in the open market, it is Tk 112 on Thursday.
To ensure supply, Bangladesh Bank on Wednesday ordered individuals to sell off or deposit dollars in excess of $10,000 by Sept 30 or face legal actions.
Meanwhile, demand for dollars has also put pressure on Bangladesh’s foreign exchange reserves, which stood at $39 billion on Wednesday.