The $2.42 billion remittance in the first 28 days is likely to grow with three days remaining
Bangladesh has recorded its highest remittance inflow in six months, with $2.42 billion received in the first 28 days of December.
The total is expected to rise further, with three days remaining in the month.
The last peak was in June this year, when remittance inflows reached $2.53 billion.
"In the first 28 days of December, remittance inflows reached $2.42 billion, compared to $1.99 billion during the same period last year," Husne Ara Shikha, spokesperson and executive director of Bangladesh Bank, told journalists.
This reflects a 21.60 percent increase in remittance inflow compared to December 2023.
On Dec 22, Bangladesh Bank reported that remittance inflows had already crossed $2 billion within three weeks. For November, the total remittance through banking channels stood at $2.19 billion.
Since April this year, monthly remittance inflows have consistently exceeded $2 billion, except for July, when it briefly dipped below the mark.
Bankers attribute this growth to a combination of factors, including a 2.5 percent cash incentive on remittance and a favourable exchange rate of over Tk 120 per dollar for those using banking channels.
"Higher dollar rates in banking channels have encouraged remitters," Mohammad Masum, managing director of Citizens Bank, told bdnews24.com.
"The recent political developments have also restored confidence among expatriates. Earlier, mistrust had spread through social media campaigns discouraging the use of banking channels. With renewed trust, remittance inflows are rising again," he added.
In May, Bangladesh Bank introduced the "crawling peg" exchange rate system, which saw the dollar rate rise from Tk 110 to Tk 117.
Later, the remittance rate was fixed at Tk 120 per dollar through banking channels.
This positive momentum is also evident in the fiscal year 2024-25.
Between July and November, Bangladesh received $11.11 billion in remittances, reflecting a 26.40 percent increase compared to $8.79 billion during the same period last year. —bdnews24.com
