Remittances to Bangladesh decreased 10.27% year over year to $1.69 billion in May, despite a spike in the outflow of migrant workers.
Bangladesh Bank published information on Thursday. This unwelcome development could increase economic volatility.
Bankers blame the hundi cartel, an illegal cross-border financial transaction for the decline in remittances.
The country's foreign exchange reserves have already been negatively impacted by the declining remittances.
In contrast to $42.20 billion during the same time last year, the reserves were $29.91 billion on Thursday.
However, according to Bangladesh Bank data, remittances slightly increased by 1.13% year-on-year to $19.19 billion in the first 11 months of this fiscal year.
