Lowest remittance in 10 months in July

Expatriates sent $190.9 crore remittances through banking channels in July last, the lowest in last 10 months.

Earlier in September last year, the country got remittances worth $133 crore, according to information provided by the Bangladesh Bank on Thursday (August 1).

Executive Director and Spokesperson of Bangladesh Bank Md Majbaul Haque said that in July, the expatriate income in the country was $190.9 crore. Last year, the remittance was $197.3 crore in July.

According to the data of Bangladesh Bank, in 2023-24 financial year, the remittance in July was $197.31 crore, in August $159.94 crore, in September $133.43 crore, in October $197.14 crore, in November $193 crore, in December $199.12 crore, in January $211.31 crore, in February $216.45 crore, in March $199.70 crore, in April $204.42 crore, in May $225.38 crore, and in June $254.16 crore.

Compared to June of this year, remittances decreased by $63.2 crore in July.

The bankers say that as the anti-quota student movement in the country turned into violence, the government had issued a 3-day general holiday with curfew in the third week of July. Banks and financial institutions were closed at that time. Obstacles were created for expatriate income to come to the country legally, which has an impact on July remittances.

A decrease in remittances will put pressure on the reserves. In such a situation, Bangladesh Bank has given verbal instructions to about 20 banks to bring remittances at higher prices to encourage expatriates to reduce the pressure on reserves.

After the introduction of the 'crawling peg' system to fix the dollar price, the dollar rate in the banks was the highest at Tk 118, but after the verbal instruction of the central bank on Sunday, several banks offered remittance purchase rates of dollars from Tk 118.50 to Tk 119. As a result, the dollar price is affected in the open market as well. The price of the dollar in the open market has started to rise.

In such a situation, the 'Money Changers Association of Bangladesh' on Wednesday said that the retail price per dollar cannot be sold more than Tk 119. Action will be taken, if sold. However, every dollar has been sold at Tk 125 in the open market today (Thursday).