Remittances surge to $2.22b in August

Since the Sheikh Hasina government fell on 5 August, the country has seen a significant increase in remittance inflows.

According to Bangladesh Bank data, Bangladesh’s remittance receipts in August 2024 reached $2.22 billion, marking a substantial 38.75% increase compared to the same month of the previous year.

This rise follows a period of slowed remittance inflows as expatriates, expressing distrust towards the previous government, opted to send funds through unofficial channels.

The rise in remittances has been particularly notable since the change in government.

In July, remittances dipped below $2 billion for the first time in several months, a trend that reversed in August with the inflows exceeding this benchmark.

A senior official of the Bangladesh Bank attributed the increase to greater confidence among expatriates in remitting funds through legal channels. Awareness campaigns and the political transition have played a crucial role in encouraging this shift.

“The recent increase in remittance inflows is a positive sign, and we expect this trend to continue,” the official stated.

The government and the central bank have been working to make it easier for expatriates to remit funds legally. This includes streamlining procedures and offering incentives.

Remittances have been consistently high throughout the year. In the first month of the current fiscal year, July 2024, remittances stood at $1.91 billion.

This followed higher figures in the preceding months, including $2.54 billion in June, $2.25 billion in May, and $2.04 billion in April.

The country’s foreign exchange reserves have also been stable. As of 28 August 2024, the reserves stood at $20.59 billion according to international standards.

However, the central bank’s own accounting system shows a higher figure of $25.47 billion.

Bangladesh Bank Governor Ahsan H Mansur expressed optimism about the country’s foreign exchange reserves, stating that they are unlikely to decrease further.

The surge in remittances has contributed significantly to the stability of the reserves.