Remittance falls 13.15% in May

Foreign Remittance Incentive
Representational image. Reuters file photo

Inflow of remittance declined 13.15 per cent in May as the expatriate Bangladeshis are now sending their income through the informal channels.

Remittances stood at $1.88 billion in May compared to $2.17 billion in the same period a year ago, according to the latest central bank data released today.

The inflow also declined 15.95 per cent year-on-year to $19.19 billion in the first 11 months (July-May) of this fiscal year.

Remittances have been facing downward trend in the last couple of months as many expatriate Bangladeshis are now sending remittances through hundi, an illegal channel of cross-border financial transaction system.

The hundi cartel had faced disruption during the height of the pandemic due to the lockdown imposed by many countries, which helped Bangladesh to manage a robust remittance.

But the hundi channel has got back its tempo, leaving an adverse impact on remittance.

Against the backdrop, the country's foreign exchange market is now under pressure amid a dollar crunch in the banking sector.