Bangladeshi expatriates send $1.49 billion in May before Eid

Bangladeshi expatriates have remitted $1.49 billion in May ahead of the Eid-ul-Fitr.

The figure is the highest for a single month over the past four years and the second biggest for a month in history.

The previous monthly highest was $1.5 billion recorded in July 2014.

In the first 11 months of the current fiscal year, Bangladesh has received $135.75 billion, which is 6.3 percent higher than the last full fiscal year, according to the latest data from Bangladesh Bank.

Finance Minister Abul Maal Abdul Muhith has said like every year, expatriates are sending more remittances ahead of the Eid.

He believes this trend will continue right through to the festival.

“We expect that the remittance inflow will exceed $15 billion by the end of this fiscal year," he said.

In May last fiscal year, the amount of remittance was $1.27 billion.

Finance Minister Muhith believes the positive trend of remittance inflow will continue due to rising oil prices in the international market, stronger dollar prices against local currency and steps taken by the central bank to curb illegal hundi trade.

The remittances sent by the expatriates accounted for 12 percent of Bangladesh's GDP. More than half of Bangladesh's remittance comes from six Middle East countries—Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain.

In FY 2014-15, migrant workers remitted $5.32 billion. Since then, remittance inflow had continued to decrease for the third consecutive year.

Increase in manpower export and depreciation of taka against the US dollar are also helped increase the remittance inflow, according to Muhith.

During July-March period of the current fiscal year, manpower export increased by 26.8 percent, he said.

According to BB figures, in the interbank exchange market, each dollar is now sold at Tk 83.70. The taka depreciated by 4 percent in a year due to slower remittance and export, and higher imports.

However, foreign currency reserves remained satisfactory due to the surge in the remittance inflow.

The reserves were $32.42 billion on Sunday.

In May last, expatriates remitted $359 million through six state-owned banks, $1.09 billion through 39 private commercial banks and $10 million through nine foreign banks.