Remittance surges by 32% in May

Bangladesh received US$2.25 billion in remittances in May, marking a 32.35% increase compared to the same month a year earlier, according to Bangladesh Bank data.

In May 2023, receipts through the banking channel totalled $1.7 billion.

The data also showed that remittances in May this year increased by 10.29% from the previous month. In April 2024, the country received $2.04 billion in remittances.

In the first six months of FY 2023-24, expatriates sent home $1.97 billion in July, $1.59 billion in August, $1.33 billion in September, $1.98 billion in October, $1.93 billion in November, and $1.99 billion in December.

In January, February, and March, the banks channelled $2.11 billion, $2.16 billion, and $1.99 billion, respectively.

Due to the drop in remittances at the beginning of the current fiscal year, the health of the country’s foreign exchange reserves remains weak, according to analysts.

However, they attributed the recent increase in remittance inflows through formal channels to the government’s various initiatives, including a rise in incentives for remitters, aimed at stabilising the country’s foreign exchange market.

In 2023, Bangladesh received $21.92 billion in remittances, marking a 2.88% increase from 2022. At the end of 2022, expatriate Bangladeshis had sent home $21.29 billion, the data showed.