Bangladesh’s inward remittances rise by 80% in September

The dollar price is higher in the banking channel than in the open market, a bank official says

Remittance to Bangladesh has increased by 80.45 percent in September than the same month last year, totalling $2.40 billion.

Bangladesh Bank spokesperson Husne Ara Shikha disclosed the information to the media on Tuesday.

“Around $99 million remittances arrived on Sept 30. The remittances totalled $2.40 billion in September. That means an increase of 80 percent,” she said.

According to the Bangladesh Bank data, the remittance inflow stood at $1.33 billion at the same time last year.

Meanwhile, September's figures show an 8.10 percent rise from August’s remittances although the inflows were disrupted in the first nine days of August due to the quota reform movement and the internet shutdown.

June saw the highest remittance inflow in 47 months, amounting to $2.54 billion, a 16 percent rise from June 2023.

The dollar price rose from Tk 110 to Tk 117 after the central bank had introduced the 'crawling peg' method in May this year, resulting in a hike in remittances in the banking channel.

When asked on the matter, Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said the price of the dollar is Tk 121.50 in the open market. But the rate is Tk 122.50 with incentives in the banking sector now. That’s why more dollars are coming into the banking channel.