Bangladeshis remit over $2bn in four months, inflow up by 14% in November

Inward remittances have increased by 26.40 percent in the five months of the current fiscal year

Expatriate Bangladeshis have consistently pumped money into the flagging economy back home, with remittances surging by over $2 billion for the fourth consecutive month.

In line with the previous three months' additional remittances, around $2.19 billion in remittances came in November, which is 14 percent more compared to the same month last year.

The data published by the Bangladesh Bank on Sunday shows the flow of money coming to the banking channel continues to increase.

In addition to the 2.5 percent incentive, expatriates are getting more than Tk 120 per dollar if they send remittances through banks.

This is why bankers believe that remittances are increasing in the banking channel.

Mohammad Masoom, managing director of Citizens Bank PLC, or CZB, told bdnews24.com: “The price of dollars in the bank is increasing and it has become equal to the open market rate. At the same time, the oppression of hundi traders has also declined as the expatriates' confidence in the banking sector has grown.

"The expatriates were upset surrounding the incidents that occurred in July and August. They are sending more remittances now as the distress wanes. Their confidence in the country is increasing."

The dollar price rose from Tk 110 to Tk 117 after the central bank had introduced the 'crawling peg' method in May this year.

The rate of remittance was fixed later at Tk 120 in the banking channel.

According to the central bank, the country has been receiving over $2 billion in remittances since April this year. It only goes down in July.

However, bankers said remittance inflows dropped in July due to the quota reform movement. Unrest across the country, as well as the closure of banks and the internet that month, also hit the flow of remittances.

The country received $1.9 billion in remittances that month.

After the interim government took charge following the fall of the government in August, the remittances started increasing again.

Around $2.22 billion in remittances came in August, $2.40 billion in September, and $2.39 billion in October.

In this wave of remittances, around $11.11 billion came in the five months from July to November of the current 2024-25 fiscal year, compared to $8.79 billion in the previous year.

That means remittances have increased by 26.40 percent.