Remittance inflow in Jan up by 45pc to $ 3.17 billion

Bangladesh continues to see a remarkable growth in the remittance inflow with its January receipt recording US$3.17 billion amid a peak remittance-netting period.

The amount was over 45 per cent higher than that of $2.20 billion in the corresponding period of last year.

The surge in the remittance earnings gave a much-needed respite for the country that was required to boost foreign-exchange reserves for meeting various macroeconomic challenges in the post-election regime, especially when its economic activities are expected to be enhanced from the prevailing sluggishness.

According to Bangladesh Bank (BB), the country's central bank, Bangladeshi expatriates sent home $3.17 billion in the just-concluded month of January, which was the third-largest monthly inflow on record.

The country registered the highest and second highest monthly remittance of $3.29 billion and $3.22 billion in March and December last year respectively.

A central bank official, preferring anonymity, said the Bangladesh Bank has taken proactive measures to boost foreign-currency inflows, aiming to help stabilise the country's forex market through regulatory interventions under the free-floating exchange regime.

"These steps encourage remitters to send more money home," the official said.

The central banker said forex trading on the interbank spot market gathers pace because of the rising currency inflows, which ranges between $40 million and $60 million.

"… this is a good sign for the country's overall balance of payment," the BB official adds.

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