Monthly remittance hits 4-year high in May as Eid nears

Staff Correspondent | Published: 00:33, Jun 04,2018 | Updated: 00:41, Jun 04,2018

 
 

Monthly remittance inflow hit four-year high in May as expatriate Bangladeshis sent an increased amount of money ahead of Eid-ul-Fitr, the biggest festivals of the Muslims, amid soaring value of US dollar against the taka.
Remittance inflow rose by 16.97 per cent to $ 1.48 billion in May against that of $1.26 billion in May last year, according to Bangladesh Bank data released on Sunday.
Before May this year, monthly inflow of remittance was highest in July of the fiscal year 2014-15 when the figure was $ 1.49 billion.
The year-on-year remittance inflow registered growth in all 11 months, except September, of the current fiscal year.
According to BB officials, remittance inflow usually increases ahead of Eid as expatriates send money to their families to meet up the additional spending for the festival.
Appreciation of the dollar against the taka worked as another important factor for the growth in remittance, they said.
As per the central bank web site data, the exchange rate of dollar, which was Tk 78.7 in January last year, increased to Tk 80.6 in June last year, Tk 82.9 in January this year and Tk 83.70 in April this year.
The exchange rate, however, is quite high in the commercial banks including state-owned Sonali Bank.
On Thursday, Janata Bank bought a US dollar at Tk 83.3 and sold a dollar at Tk 84.2.
BB officials said a higher exchange rate for the dollar works as an incentive for the expatriates to send money through the legal channel in the country.
As the dollar rate was on the rise for last one year, expatriates’ money transfer through the legal channel was also on the rise, they said.
Besides, a number of private banks which were suffering from dollar crisis on the backdrop of increasing demand for dollar for the import payments announced special offer rates to get rid of liquidity crisis, BB officials said.
Remittance inflow in the 11 months (July-May) of the fiscal year increased by 17.48 per cent or $2.02 billion to $13.57 billion from $11.55 billion during the same period of the previous year, the BB data showed.
According to the BB data, in April this year the private commercial banks received $ 1.1 million in inward remittance, while the state-run commercial banks got $359.60 million, foreign commercial banks $ 13.41 million, and specialised development banks $12.27 million.
Islami Bank Bangladesh received the highest amount of remittance — $ 284.25 million — among the private commercial banks, while Agrani Bank got the highest amount — $143.23 million — among the state-run banks.

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