Money transfer scam, appreciating BDT unlikely to hit remittance flow

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The recent remittance scam by a UK-based money transferer firm and the recent appreciation of local currency BDT (Bangladesh Taka) against foreign exchange is unlikely to affect remittance inflow that rose close to $6.0 billion mark last fiscal ending on June 30, reports UNB.
"The exchange rate won't affect the remittance. There is no alternative to formal channel for remitting money amid the current anti-money laundering drive," Bangladesh Bank Governor Salehuddin Ahmed told reporters Thursday, replying to a question after a workshop at Sheraton Hotel.
According to Bangladesh Bank figures, the Taka-Dollar exchange rate declined to Tk 68.80 to a dollar as on July 4 from Tk 69.72 on the same day of the last year. The rate went as high as Tk 70 to a dollar during the immediate-past fiscal year.
International Monetary Fund (IMF) in its recent publication on Bangladesh released Tuesday attributed better exchange rate as one of the reasons of strong remittance inflows.
"Presently, BB is experiencing upward pressure on the exchange rate owing in large parts to strong remittance inflows," it said. The IMF evaluation was based on information available at the time when the IMF staff team completed its visit in April.
On the impact of remittance scam, the Governor said the scam was an isolated one that took place suddenly. However, he said, Bangladesh Bank is trying to resolve the problem while considering the formulation of a guideline in this regard to avert future problem regarding remittance.
He said the central bank has already asked the commercial banks to inform them at the very beginning of any such problem so that immediate remedial measures could be taken.
Salehuddin said Bangladesh High Commission in London was holding discussions with the UK authorities and the money transfer firm, First Solution Money Transfer Limited, also contacted the High Commission to reach an acceptable solution.
The High Commission, he informed, had two meetings with the company.