Staff Correspondent
In a remarkable surge, expatriates sent home $1.05 billion in the first 12 days of August – a staggering 46% increase compared to the $721 million received during the same period last year. Bangladesh Bank’s Executive Director and spokesperson Md. Arif Hossain Khan confirmed these figures to journalists on Wednesday, attributing the growth to market-driven exchange rates and migrant incentives.
July-August Remittance Boom
Central bank data reveals a broader upward trend, with $2.47 billion remitted in July alone. The cumulative July-12 August inflow of $3.53 billion marks a 34% year-on-year increase from the $2.63 billion recorded last year. Economists highlight that the flexible exchange rate regime introduced earlier this year has significantly boosted formal remittance channels.
Dollar Dynamics Stabilize
The remittance surge has bolstered dollar supplies in banks, while import payments and backlog pressures have eased. This dual effect has cooled dollar demand, leading to a noticeable depreciation of the greenback since July. Analysts suggest sustained remittance growth could further strengthen Bangladesh’s forex reserves, currently hovering around $40 billion.
Key Takeaways:
• 46% spike in early August remittances
• $3.53B total July-12 August inflow
• Exchange rate flexibility credited for growth
• Dollar depreciation continues amid ample supply