Remittance up 7.13pc

Remittance posted 7.13 percent growth in August compared to July thanks to the depreciation of the taka against the US dollar.

Expatriates sent home $1.41 billion last month, up from $1.31 billion in July. The amount of remittance was also $1.41 billion in August 2017.  

Bangladeshis living abroad now remit more money through formal channels as their near and dear ones get better rates against the dollar, an official of the central bank said. Many banks are offering higher rates against the remitted greenbacks to encourage the migrant workers to send money via their channels, he said.

On August 30, the interbank exchange rate was Tk 83.75 per US dollar, up from Tk 80.70 a year earlier.

The upward trend of remittance inflow is helping the country to reduce its large current account deficit, the central banker said.

The deficit hit a record $9.78 billion last fiscal year.

The banking sector has been facing a shortage of greenbacks for several months because of higher import payments.

He said banks are deploying representatives abroad to boost the flow of remittance through legal channels.

At the same time, the central bank has strengthened surveillance against hundi, an illegal cross-border fund transfer process.

The monitoring has given a boost to the inbound remittance flow, he added.