Bangladesh receives $2.09b remittance in July, highest in 14 months

Expatriates sent inward remittances worth $2.09 billion in July, the first month of the current fiscal year, Bangladesh Bank (BB) report said.

The BB report released on Monday stated that the remittance flow of July is the highest in 14 months.

The bankers and concerned people said that the holy Eid-ul-Azha is celebrated in July. Expatriates usually send additional money to their relatives during Eid.

Md Serajul Islam, executive director and spokesperson of BB said that the central bank has simplified various processes to attract more remittances through banking channels.

The government is also extending remittance incentives as well as providing policy support. Now the dollar rate is getting higher, he said.

"Besides, last month was Eid-ul-Azha, and expatriates sent money to celebrate the family's Eid festival beautifully. Remittances have increased due to these reasons. I hope this trend will continue," Serajul said.

In June, the ending month of the last fiscal year, the expatriates sent $1.83 billion inward remittance through the banking channel.

Bangladesh received the highest $24.77 billion inward remittance in FY2020-21, amid global movement restrictions along with air flight due to the worsening situation of Covid-19 pandemic.

After that in FY 22 remittance income fell to $21.03 billion.

The sector insiders and experts believed that around $2.0 billion in remittances entered Bangladesh on illegal paths despite different initiatives, including incentives as stimulus to send remittances in the legal channel.

Sources said a number of Bangladeshi expatriates in the Middle East, Malaysia, the USA, and Europe who cannot send money to the country in the banking channels lack valid documents.

As a result, they have to depend on illegal hundi and other informal channels for sending their earnings to relatives in Bangladesh.