Bangladesh's remittance inflow sees 32% growth in May

Remittance inflow to Bangladesh jump 32.35% year-on-year to $2.25 billion last month as the country's migrant workers sent more money home ahead of Eid-ul-Azha.

The remittance receipts were $1.7 billion in May 2023,  according to Bangladesh Bank data.

May's receipts were also 10.29% higher than that of April.

In March, $2.04 billion entered Bangladesh as remittance, central bank data showed.

In the last 11 months from July (2023) to May (2024) of the financial year 2023-24, the remittance inflow was $21.36 billion, up 10% from $19.42 billion in the same period of the previous financial year.

Industry insiders said remittance inflow rose ahead of Eid-ul-Azha as the country's migrant workers typically send more money home ahead of the major religious festival for Muslims.

On the other hand, the remittance inflow increased because some banks started offering higher rates than the official rates for collecting remittances, they said.

Banks are now offering Tk 117 to Tk 120 per dollar in case of collecting remittances after the introduction of a new exchange rate system -- "crawling peg".

On May 8, the central bank introduced the crawling peg exchange rate system and allowed banks to buy and sell US dollars freely at around Tk 117 in line with the prescription of the International Monetary Fund (IMF).

Bank officials said the remittance inflows are not up to par considering the record number of manpower exports.

In 2023, a record 13.05 lakh workers went abroad for jobs, up 15% year-on-year, according to data from the Bureau of Manpower, Employment and Training.

The remittance inflow was $2.16 billion in February, up from $2.11 billion in January, according to the central bank data.

Bankers said if the inflow continues to rise in the upcoming months, it will be a relief for the government by helping to boost the country's foreign exchange reserves.