Bangladeshi expatriates sent US $2.25 billion inward remittance in May, which brings good news amid the foreign exchange crisis.
Bangladesh Bank's (BB) latest remittance update revealed that expatriates sent $2.25 billion as remittance in May this year, an increase of 32.35 percent year-on-year. Remittance was $1.7 billion in the same month of last year.
May 2024's receipts were also 10.29 percent higher than April this year. In March, $2.04 billion entered Bangladesh as remittance, central bank data showed.
The sector insiders said the higher exchange rate of the dollar and ahead of Eid-Ul-Azha, the expatriates are sending additional remittance to their near and dear relatives. So the inward flow of remittance sees such a growth.
According to the Bangladesh Bank (BB), the country received $10.56 billion from expatriates in five months from January to May this year. After different initiatives to encourage inward remittances flow by banks, Bangladesh saw a boost of remittances flows over $2 billion in these 5 months.
Bangladesh received $2.11 billion in January, $2.16 billion in February, $19.97 billion in March, $2.04 billion in April, and $2.25 billion in May, which saw a shining in the economy during the foreign exchange crisis.
Economist Dr Ahsan H. Mansur told UNB that Bangladesh can earn more remittances in the legal channel by enhancing financial and non-financial benefits for the remitters in the legal channel.
He said remitters are preferring Hundi as the exchange rate is higher Tk 5 to 7 per US dollar in the illegal format, so legal remittances are diverting in the illegal Hundi due to the difference in exchange rate.
Mansur said the government could announce different benefits including health cards, insurance coverage, pension benefits, etc.
