Remittances surge to $2.4b in Sept

Bangladesh witnessed a surge in remittance inflow with earnings soaring to $2.4 billion in September, which is an 80.2% year-on-year growth, according to the central bank data released on Tuesday.  

In September 2023, it was $1.3 billion.

Since the Sheikh Hasina government fell on 5 August, the country has seen a significant increase in remittance inflow.

This rise followed a period of slowed earnings as expatriates, expressing distrust towards the previous government, opted to send funds through unofficial channels.

In July, remittances dipped below $2 billion for the first time in several months, a trend that reversed in August and September with the earnings exceeding this benchmark.

In August, expatriates sent $2.22 billion.

A senior official of the Bangladesh Bank attributed the increase to greater confidence among expatriates in remitting funds through legal channels. Awareness campaigns and the political transition have played a crucial role in encouraging this shift.

“The recent increase in remittance inflow is a positive sign, and we expect this trend to continue,” the official added.

Remittances have been consistently high throughout the year. In the first month of the current fiscal year, remittances stood at $1.91 billion in July.

This followed higher figures in the preceding months, including $2.54 billion in June, $2.25 billion in May, and $2.04 billion in April.

The country’s foreign exchange reserves have also been stable. As of 26 September, the reserves stood at $19.56 billion according to international standards.

However, the central bank’s own accounting system showed a higher figure of $24.67 billion.

Bangladesh Bank Governor Ahsan H Mansur expressed optimism about the country’s foreign exchange reserves, stating that they are unlikely to decrease further.

The surge in remittances has contributed significantly to the stability of the reserves.