Dhaka, Bangladesh (BBN)- The flow of inward remittances crossed US$6.50 billion in the first quarter (Q1) of the current fiscal year (FY), 2024-25, marking 33.33 per cent growth over the corresponding period of the last fiscal, officials said.
Bangladesh received $6.54 billion during the July-September period of FY’25 against $ 4.91 billion in the same period of the previous fiscal year, according to the central bank’s latest statistics, released on Tuesday.
This surge indicates a growing trend of expatriates utilising formal banking channels to send money to Bangladesh.
Bankers attribute this increase to a shift away from informal methods like hundi since the formation of the new government.
Expatriates are now more willing to stand in queues at banks to send remittances, contributing to a significant boost in the country's expatriate income, they explained.
Bangladeshi nationals working abroad sent $2.40 billion in the month of September, up by $180.64 million than the amount remitted in the previous month. In August last, the remittance was worth $2.22 billion.
It was $1.33 billion in September 2023.
The central bank already took a series of measures including creation of mass awareness so the expatriate Bangladeshis send their hard-earned money home through the banking channel instead of the illegal “hundi” system and thus help boost the country’s foreign exchange reserve.
Most private commercial banks along with the state-owned ones are trying desperately to increase the flow of inward remittances from the Middle East, the United Kingdom, Malaysia, Singapore, Italy and the United States.
“We’re trying to increase the inflow of remittances from different parts of the world by establishing new contacts with overseas companies," a senior official at a leading private commercial bank said.
He also said most of the banks were still serious about increasing the inflow of remittances through official channels to meet their internal foreign exchange demand.
BBN/SSR/AD