Bangladesh sees remittance sink over 15% in July-August

Remittance, one of the key actors in Bangladesh's economy, has dropped in the first two months of the current fiscal year by 15.3 percent.

Analysts think there will be 'negative' impact on the country's macro-economy if the downtrend in remittance flow continues.

According to data published by the Bangladesh Bank on Monday, the Bangladeshi expatriates remitted over $1.18 billion in August.

The amount is $11.5 million or 1 percent less than around $1.2 billion remittance received same month last year.

The August remittance, however, is up from July. The country received a little over $1 billion in the first month of the financial year.

The amount of remittance received in July-August period of 2015-16 fiscal year was over $2.58 billion.

The remittance inflow in the same period this year has dropped by 15.3 percent to around $2.19 billion.

Bangladesh Institute of Development Studies (BIDS) researcher Zaid Bakht thinks there is nothing to be worried about the drop in two months.

"The first month of the fiscal year was the month after the Eid-ul-Fitr. The expatriates send less remittance in this month every year," he said.

"And the increased remittance they are sending now ahead of the Eid-ul-Azha will add to the account of September," he added.

Bakht said the remittance flow decreased due to the expatriates taking illegal channels to send money and the devaluation of currencies other than US dollar.