Remittance flow shrinks further in November
The flow of remittance to Bangladesh went down heavily in November as many expatriate Bangladeshis continue to prefer the informal channel in sending their money.
Expatriate Bangladeshis sent $1.55 billion in November, down 5.48 per cent from the previous month and 26 per cent year-on-year, according to data from Bangladesh Bank.
The unofficial route had faced a major disruption since the first quarter of 2020 as international travels came to a halt because of the pandemic, fuelling the growth of remittance through banking channels, a central bank official said.
Many nations, including the countries where most expatriate Bangladeshis work, had enforced strict restrictions on the movement to contain the spread of the virus.
As people's movement resumed, the global hundi cartel, which operates an illegal cross-boundary financial system, has become active again.
Remittance, which plays a major role in strengthening the country's foreign exchange reserves, fell 21 per cent year-on-year to $8.60 billion in the first five months of the current fiscal year.
Reserves surpassed $48 billion in August, but it is now maintaining a downward trend after the month. The reserves stood at $44.94 billion in November 24, up 9 per cent from a year ago.