Leading up to Eid-ul-Fitr, remittances through banking channels in the country saw a modest increase in April. However, the flow of remittances didn't surpass that of the first two months of the year. In April, amidst the Eid-ul-Fitr festivities, the remittance inflow amounted to $2.04 billion, marking a mere 2.35% increase from March 2024.
Bankers note that traditionally, remittance inflows tend to surge during Eid. Yet, this April saw remittance patterns resembling those of other months, despite the anticipation of higher expatriate income during Eid. A bank manager, seeking anonymity, remarked that, unlike previous years, there wasn't a discernible spike in expatriate income this time around.
Additionally, some attribute the slight increase in remittances to the relatively higher exchange rates offered by select banks for US dollars. In comparison to April 2023, this year's April remittances were notably higher, showing a 21.3% increase, echoing the trend observed during last year's Eid-ul-Fitr.
Data shows it was 5.59% lower than February and 3.31% lower than January 2024.
However, Bangladesh Bank data shows that expatriate Bangladeshis sent home $1.99 billion in March, down from $2.16 billion in February and $2.11 billion in January.
Economists had said this depreciation in the dollar's value discouraged expatriates from utilizing the banking channel to send their hard-earned money back home.
The hundi is still a major obstacle to the legitimate flow of remittances, which the Bangladesh Bank is failing to break, they believe.
Bangladesh Bank’s official data shows in the 30 days of April $211.27 million remittance came through state-owned banks, $97.23 through specialized banks, $1728.08 million via private banks, and $6.48 million through foreign banks.
