Bangladesh receives $1.98b in remittances in Oct, highest in four months

Dhaka: Bangladesh received $1.98 billion in inward remittances in October, the highest in four months due to increase in dollar rate and increase in incentives.

According to the central bank data, expatriates sent $643 million more remittances in October compared to September, at a growth rate of 48.20%. Remittances stood at $1.33 billion in September, which was the lowest in the last 41 months.

Earlier in October 2022, Bangladesh received $1.59 billion in remittances.

A senior official of the central bank said expatriates send remittances only through the channels where remittance rates are higher. As expatriates fetch higher prices in the hundi market, remittances came in less through the banking channel.

The remittance incentive has been increased from 2.5% to 5% at the end of this month due to which remittances have come in higher this month, the official said.

An official of a private bank told The Business Standard that the treasuries of some banks were fined due to overpricing of the dollar. However, the central bank has verbally asked some banks to bring remittances at a higher rate due to lower remittances, so the remittance has increased.

In the first four months (July-October) of the current financial year 2023-24, Bangladesh received $6.88 billion in remittances. It is 4.36% lower than the amount received ($7.19 billion) in the same period of the previous fiscal year.