The Financial Express

Remittance inflow into Bangladesh falls in July-August

| Updated: September 20, 2021 11:20:43

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The flow of inward remittances fell more than 19 per cent during July-August period of this fiscal year over the corresponding first two months of the past FY, according to official statistics, mainly for two decelerators.

The inflow amounted to US$ 3.68 billion during the period under review. It was $4.6 billion in the same period a year before.

People familiar with the developments on the foreign-exchange front told the FE that such fall is due to the second wave of the ongoing coronavirus pandemic and resurfacing 'hundi' activities.

The remittance inflow also fell nearly 8.0 per cent to $1.8 billion in August 2021.

"To my mind, lower working days because of the lockdown also pushed down the inflow of remittances in August," a BB senior official told the FE, explaining the ebb tide in remittance.

Currently, 29 exchange houses are operating across the globe, setting up more than 1,450 drawing arrangements abroad, to expedite the remittance inflow, according to the central banker.

Syed Mahbubur Rahman, managing director and CEO at Mutual Trust Bank, said: "We have to wait few months more to find the reasons behind it."

Mr Rahman hinted that 'hundi' activities increased again.

The central bank had earlier taken a series of measures to encourage the expatriate Bangladeshis to send their hard-earned money through formal banking channel, instead of the illegal 'hundi' conduit, which can help boost the country's foreign-exchange reserves.

Remittance is the second-highest forex-earner for Bangladesh after readymade garments. A steady inflow of foreign currencies even during the corona onslaught-when exports faced a setback--had raised the country's foreign-exchange reserves over $48 billion recently

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