Bangladesh's remittance inflow surged by over 32 per cent year-on-year in May, offering a much-needed respite to the economy wrestling with a foreign exchange shortage.
Confirming the development, Bangladesh Bank (BB) Spokesperson Md Mezbaul Haque said the country received $2.25 billion in remittances in May. This represents a 32.35 per cent year-on-year increase from the $1.69 billion recorded in the same month last year.
According to BB data, May's remittance is the highest monthly total since July 2021.
The latest inflow brings the total remittance earnings for the current fiscal year (FY24) to $21.37 billion. This is already more than 95 per cent of the $21.61 billion earned in the entire FY23.
Speaking on condition of anonymity, a BB official said remitters usually send more money home ahead of religious festivals like Eid. The recent 5.98 per cent devaluation of the local currency Taka against the US dollar likely further encouraged them to transfer more funds before Eid-ul-Azha.
"May's remittance inflow likely sets a new record for recent months, which is a welcome relief in the current macroeconomic context," said the central bank official.
The fast-depleting foreign exchange reserves have become a serious concern for the $460 billion-plus Bangladesh economy.
The country even faces difficulties meeting the net international reserve (NIR) target set by the International Monetary Fund (IMF) as part of its $4.7 billion credit package for restoring macroeconomic stability.
The country's gross foreign exchange reserves stood at $24.20 billion on May 30, 2024, as calculated by the central bank. However, the IMF uses a different methodology (BPM6) and reports reserves at $18.67 billion for the same date.
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