Biz-Econ

Expats remit Tk 26,640cr in August

After the resignation of the Sheikh Hasina government, remittances from expatriates have seen a significant increase, reaching Tk 26,640 crore ($2.22 billion) in August. 

This marked a recovery from the previous months when remittances had slowed, partly due to expatriates' distrust in the outgoing government, leading them to avoid sending funds through legal channels.

The Bangladesh Bank released this information on Sunday (September 1), noting that August's remittances were $620 million higher than the same period last year. In August 2023, remittances stood at approximately $1.6 billion.

A senior official of Bangladesh Bank mentioned that remittances had exceeded $2 billion for three consecutive months from April but fell below this threshold in July. 

The recent increase is attributed to efforts encouraging expatriates to use legal channels for sending money, with expectations of continued growth in legal remittances.

Bangladesh Bank data also revealed that in July, the first month of the fiscal year 2024-25, remittances totaled $1.90 billion. In June, the figure was $2.54 billion, while May saw remittances of $2.25 billion. Earlier months reported remittances of $2.04 billion in April, $1.99 billion in March, $2.16 billion in February, and $2.11 billion in January.

On the foreign exchange reserves front, as of July 31, the country held $20.48 billion in reserves, which remained stable until August 21. 

The reserves slightly increased to $20.59 billion on August 28. 

However, according to the central bank's own accounting, the reserves currently stand at $25.47 billion. The new governor of the central bank, Dr Ahsan H Mansur, remains optimistic but noted that reserves are expected to decrease in the near term.