Bangladesh's remittance earnings reached $2 billion in March, after six months due to higher dollar rate from banks compared to the rate set by Bangladesh Foreign Exchange Dealers Association (Bafeda).
Bangladesh Bank data showed that inflow through the banking channel rose by 29.29% in March, from $1.5 billion in February.
The remittance inflow increased through the banking channel as bankers offered a maximum Tk117 per dollar when Bafeda set the rate at Tk107, according to industry insiders.
Remittance inflow has been recorded below $2 billion since September last year after the Bangladesh Bank reduced the remittance rate to Tk107 from Tk108.
Bankers said many import payments were deferred due to the dollar crisis.
For this, dollars coming from expatriates are being bought at a higher price than the fixed rate.
As a result, expatriate income increased. If the price limit of the dollar is removed, the crisis will go away, they say.
In addition to a 2.5% hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange.
Banks will not cut any charge or fee for sending remittances through legal channels.
