Remittances rise on weak taka

Remittance inflow edged up 15.23 percent last month thanks to the continuous depreciation of local currency against the greenback, which allowed the local beneficiaries to get more.

The inter-bank exchange rate throughout January stood at Tk 83.95, up from Tk 83.90 the previous month.

Subsequently in January, expatriate Bangladeshis sent home $1.59 billion, up 32 percent from the previous month, according to data from the Bangladesh Bank.

January's receipts take the remittance inflows in the first seven months of the fiscal year to $9.08 billion, up 27 percent year-on-year.

The central bank in its latest monetary policy set the remittance growth target for fiscal 2018-19 at about 11 percent. Remittance inflows last fiscal year amounted to $14.98 billion.

Inflows increased as the central bank has taken various measures to curb remittance through the illegal channel, said a senior BB official.

Moreover, the dollar's appreciation against the taka encouraged remitters to send money home through the official channel, he added.

In the first six months of last fiscal year, taka depreciated 0.2 percent against the US dollar. The depreciation was moderate as the BB sold over $1.1 billion to avoid excessive fluctuation of the exchange rate. In the monetary policy announced last week, the BB said additional foreign exchange flexibility would likely be needed to ensure that exchange rates remain well-aligned with the market forces. The statement hinted that the dollar price will increase further in the coming days, which will be beneficial for exporters and remitters.