Bangladesh remittances fall 10.84% in September amid global recession fears, dollar shock

Bangladesh receives $1.54 billion remittances in September, the lowest since February

Inward remittances have decreased by 10.84 percent year on year to around $1.54 billion in September, the lowest in seven months. 

Bangladesh Bank released the data on Sunday as fears of a global recession and volatility in the foreign currency market due to the Russia-Ukraine war continued to affect the country’s economy. 

Government data released on the same day showed Bangladesh's exports dropped 6.25 percent year on year to $3.9 billion in September, the first decline in 14 months. 

Steps taken by Bangladesh Bank and the government helped the remittance inflow sustain its upward trajectory into August, when Bangladeshi expatriates sent out $2.03 billion 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. 

In recent months, the central bank further eased paperwork requirements for remittances while the government continued cash incentives on the money sent by expatriates to encourage them to use the legal channels. 

After the rise in remittances in August, Bangladesh Bank spokesman Md Serajul Islam said the expatriates were trying to send more money to the country by cutting their expenses as the price of the dollar was high in the market. 

But foreign currency dealers and banks capped the dollar rate for inward remittances at Tk 108 and lowered it to Tk 107.5 later following Bangladesh Bank’s instructions after the greenback’s price shot past Tk 120. 

And inflation has continued to increase globally due to the war in Europe and the West’s sanctions on Russia, which means the expatriate Bangladeshis’ cost of living has also increased.

Bangladesh saw inward remittance slump by 15.12 percent to $21.03 billion year on year in 2021-22 after growing by more than 36 percent to $24.78 billion in 2020-21.