ছবি: Photo: Collected
Bangladesh has continued to witness robust inflows of remittances in the ongoing fiscal year, with November bringing in $2.19 billion. According to updated data released by Bangladesh Bank on December 1, this represents a slight decrease of $200 million compared to October’s remittance inflow but continues the positive trajectory seen since July.
Key Insights from November’s Remittance Data
- November recorded a total of $2.199 billion in remittance inflows, equivalent to approximately BDT 26,400 crore at an exchange rate of BDT 120 per dollar.
- The daily average remittance during the month was over $73.3 million.
- State-owned banks accounted for $824.2 million, while specialized banks like Krishi Bank contributed $145.8 million.
- Private banks played a pivotal role, processing $1.223 billion, with another $6.28 million channeled through foreign banks.
However, nine banks, including state-owned Bangladesh Development Bank Limited (BDBL) and private entities such as Community Bank, Citizens Bank, and Padma Bank, reported zero remittance inflows during the month.
Five-Month Overview of FY 2024-25
In the first five months of FY 2024-25 (July-November), total remittance inflows reached $11.14 billion, marking a 30% increase compared to the same period in the previous fiscal year. Monthly figures reveal consistent growth:
- July: $1.91 billion
- August: $2.22 billion
- September: $2.40 billion
- October: $2.40 billion
- November: $2.19 billion
Despite the minor decline in November, experts view the overall performance as resilient, considering the global economic uncertainties and domestic challenges.
Factors Affecting Remittance Trends
Economists attribute the dip in November to several factors, including exchange rate volatility and recent socio-political unrest. July saw a temporary drop in remittance inflows during the quota reform protests, which led to country-wide disruptions, including curfews, internet outages, and restricted banking operations.
From July 19-23, banking services were almost entirely suspended, resulting in negligible remittance inflows. The situation normalized following the transition to an interim government on August 8, spearheaded by Dr. Muhammad Yunus, which helped restore economic stability and public confidence.
Comparative Historical Context
In terms of historical highs, remittance inflows reached their peak of $2.60 billion in a single month in July 2020, followed by $2.54 billion in June 2024 and $2.25 billion in May 2024.
In FY 2023-24, Bangladesh received a total of $23.91 billion in remittances, a 10.65% increase from FY 2022-23. The highest-ever annual remittance inflow was recorded in FY 2020-21 at $24.78 billion.
Bangladesh has been grappling with a foreign currency reserve crisis, exacerbated by high global commodity prices due to the Russia-Ukraine war. This has increased import costs while limiting export growth and remittance inflows.
To address this, Bangladesh Bank has implemented various measures, including incentives for remittance senders and streamlining banking processes. These initiatives have shown promising results in boosting remittance inflows, although sustaining the momentum remains a priority.
As the fiscal year progresses, the government and central bank are focusing on enhancing remittance inflows to support the country's foreign exchange reserves. Experts believe that consistent policy support and maintaining political stability will be crucial to ensuring the growth of remittance inflows in the coming months.
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