In 22 days of July, $2.17 billion remittance arrived in the country, growth 23.4 percent

According to the latest data from Bangladesh Bank, from July 1 to 22, expatriates sent $2.17 billion to the country. During the same period last year, $1.759 billion had arrived. That is, in one year, remittance increased by $411 million, which is equivalent to approximately Tk 5,055 crore in Bangladeshi currency.

On the last day, July 22 alone, $75 million arrived in the country, amounting to approximately Tk 923 crore.

According to concerned parties, increased interest of expatriates in sending money through legal banking channels, intensified monitoring against hundi, cash incentives for expatriates, and a comparatively market-based exchange rate are playing an important role in increasing remittance flow.

The positive impact of increased remittance flow is also being felt on the country's foreign exchange reserves. According to Bangladesh Bank data, the country's total gross foreign exchange reserves currently stand at $36.36 billion, and the official reserve under the International Monetary Fund's (IMF) BPM-6 method is $31.72 billion. Despite recent foreign debt repayments, strong remittance flow is playing an important role in keeping reserves above $36 billion.

However, concerned parties believe that the geopolitical instability in the Middle East has also affected remittances. A Bangladesh Bank official said that due to the ongoing conflict involving the US and Israel centered around Iran, some offices in the Middle East have closed, and many workers have become temporarily unemployed. According to him, if this situation had not occurred, remittances could have exceeded $3 billion in the current month.

According to economists, alongside export earnings, remittances are the most reliable source of foreign exchange for the country. When expatriate income increases, it strengthens the ability to meet import costs, repay foreign loan installments, maintain stability in the dollar market, and manage the central bank's reserves.

The 23.4 percent growth in remittances at the beginning of the current fiscal year sends a positive signal for the country's external sector. If this trend continues, the balance of foreign transactions and the reserve situation will further strengthen, according to concerned parties.