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Dhaka Tribune

Lowest remittance inflow in 3 years this September

Despite 1.74 million workers going abroad for employment in FY23, representing a 15.59% increase from the previous fiscal year, remittance inflow still declined

Update : 01 Oct 2023, 08:23 PM

In September, Bangladesh experienced a 41-month low in inward remittances, receiving $1.34 billion. The last time remittances were this low was in April 2020, when they were at $1.09 billion, according to data from the Bangladesh Bank (BB). 

In September 2022, remittances were at $1.54 billion, resulting in a year-on-year decrease of approximately 13%.

In August, the country saw an 18.78% drop in inward remittances compared to the previous month, marking the lowest inflow in the past six months. This development has raised concerns about Bangladesh's diminishing foreign currency reserves and financial accounts.

According to data from the Bangladesh Bank, the country received $1.6 billion in remittances in August and $1.97 billion in July. The year-on-year comparison for August also shows a worrying 21.57% decrease in inward remittances.

Some banks received more remittances, prompting questions about whether this was due to extra efforts or higher dollar exchange rates and the experts attribute the overall decline to the increased exchange rate of the US dollar in the open market, which in turn is luring expatriates towards informal cross-border money-transfer channels like "hundi."

Interestingly, despite the fact that 1.74 million workers went abroad for employment in the 2022-23 fiscal year, which represents a 15.59% increase from the previous fiscal year, remittance inflow still declined.

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