Remittance crosses $25b this fiscal year

Remittance inflow in the first ten months and eleven days of this fiscal year surpassed $25 billion, breaking all previous records.

Between July last year and May 11 this year, Bangladesh received $25.45 billion in remittances, up 28 percent year-on-year, according to data from the Bangladesh Bank.

The previous record was $24.77 billion, which came in fiscal 2020-21.

The surge in money sent home by Bangladeshi expatriates is being credited to a cocktail of factors, such as a narrowing gap between official and informal exchange rates, a clampdown on money laundering and a renewed sense of patriotism among people living abroad.

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Remittance up as rates stabilise

Since August 5 last year, remittance inflows have risen every month. In March, the country hit a single-month record of inflows: $3.29 billion.

The spike in remittance inflow is helping the government stop the depletion of foreign currency reserves.

As of May 7, foreign currency reserves stood at $20.3 billion.

The narrowing of the gap between official and unofficial exchange rates has driven this uptick, said a senior BB official.

Currently, the official exchange rate for the dollar ranges from Tk 121 to Tk 122.50, while rates in the informal market hover between Tk 123 and Tk 124.50, according to industry insiders.

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Remittance rises 35% in April

The central bank official also said that they have informed banks that the BB will no longer provide direct dollar support, pushing them to source foreign currency on their own.

This has also contributed to the remittance collection through formal channels, the official said.

Last fiscal year, Bangladesh received $23.91 billion in remittance.