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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 per cent increase in remittance inflow compared to December 2023, bdnews24.com reports.
On December 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 per cent 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, said.
“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 per cent increase compared to $8.79 billion during the same period last year.
After a stable period in the dollar market, December has seen renewed volatility, with rates nearing Tk 128 per dollar.
Bangladesh Bank sought explanations from 13 banks for exceeding the prescribed rate, subsequently instructing them not to offer more than Tk 123 per dollar for remittance.