Remittance inflow for September hit $2.40 billion, reflecting a surge of 8.12 percent compared to August. The inflow growth has been attributed to favorable conditions created by the newly established interim government, which has focused on stabilizing the financial sector encouraging remittance through formal channels.
During September Islami Bank Bangladesh PLC led the private banks strides contributing $402.78 million inflow. Agrani Bank PLC on the other hand topped among state-owned commercial banks with $322.12 million. This collective boost from private and public sector banks is seen as a positive indicator for the economy.
The interim government's emphasis on digital financial inclusion and anti-corruption measures in remittance process have made formal banking channels more appealing to expatriates. The exchange rate adjustments and increasing transparency have further contributed to the rise in remittances.
Additionally, several state-owned banks like Sonali and Rupali Banks also reported higher inflows, which complemented the government's fiscal policies aimed at stabilizing the local currency. Remittances through specialized banks like Bangladesh Krishi Bank also saw improvements, with $109.98 million coming in for agricultural development.
The rise in remittance flow is a positive sign for Bangladesh's overall economic stability, especially with increasing manpower exports to the Middle East and Southeast Asia. With the interim government's focus on strengthening bilateral relations, remittances are expected to remain a crucial element in supporting the economy in the coming months.
In a year-to-year comparison, the FY2024 remittance flows have shown resilience, with July, August, and September cumulatively surpassing $6.54 billion, a significant increase from the same period in the previous fiscal year. This steady inflow is vital in maintaining foreign exchange reserves and balancing trade deficits.
Experts suggest that political stability introduced by the interim government, along with stricter measures to curb informal "hundi" channels, have had a significant impact. The crackdown on illegal remittance has driven more money through official channels, boosting confidence in the banking system.
The ongoing campaign by the central bank and commercial banks offering competitive exchange rates, has further incentivized workers to remit money formally.
Looking forward, the interim government's continued support for digitalization and its efforts to ensure smooth banking processes are expected to maintain the momentum of remittance inflows into the last quarter of 2024.
