Remittance reaches new high with June's $2.54b

A record-high US$2.54 billion received in June ramped up Bangladesh's remittance receipt to $23.92 billion in the just-past financial year, according to official data, somewhat easing its forex dearth.
The rebound in remittance earnings provides some respite for the economy facing multiple macroeconomic strains amid a persistent foreign-exchange shortage, finance officials and analysts say.
With the latest figure, the country saw a 10.70-percent growth in remittance earnings in the FY2023-24 in comparison with the previous fiscal (FY'23) when it was $21.61 billion sent by Bangladeshi people working abroad.
In fact, the FY'24 remittance is the highest since FY'21 when the total was $24.78 billion.
According to the latest data of Bangladesh Bank (BB), the expatriates working in various overseas destinations sent $2.54 billion in the final month of the fiscal (June), the highest in 47 months after July 2021.
In FY'24, the country received $1.93 billion, $1.60 billion, $1.33 billion, $1.97 billion. $1.93 billion, $1.99 billion, $2.11 billion, $2.16 billion, $1.98 billion, $2.04 billion, $2.25 billion and $2.54 billion in remittance in July, August, September, October, November, December, January, February, March, April, May and June respectively.
Seeking anonymity, a BB official said the central bank took some proactive measures to boost inflow of foreign currencies, like massive depreciation of the local currency against the US dollar, which encourages remitters to send more money home.
"And we see the impact. This is a positive sign for the economy, which is currently under stress due to the foreign-exchange shortage," the central banker said.

Senior bankers also appreciate the outcome of remittance-boosting baits and the  outcome. Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank (MTB) PLC, says an increased number of people left the country for overseas jobs in recent months while the banks offered better incentives to allure the remitters.
As the volume of export receivables comparatively falls, he notes, the commercial banks intensified their efforts to bag more remittances offering better incentives to meet import-payment liabilities.
Simultaneously, Mr Rahman adds, the exchange rate has gone up remarkably because of latest appreciation of the US dollar against the taka that encourages remitters to send more money back home.
"We have seen some stability in remittance earnings in recent months," the experienced banker told the FE. "I hope this continues."
Mirza Elias Uddin Ahmed, managing director and chief executive officer of Jamuna Bank, says the remitters, buoyed by handsome exchange-rate gains, continue transferring increased volume of funds in recent times, which is helping stabilise the forex market.
Majority of the banks have surplus US dollars because of growing inflow of forex and started resuming the opening LC (letter of credit), which is a good sign, he said.
"But, we need to keep the trend going in the coming days," the bank's top executive said.
A top executive of a commercial bank, who preferred to be anonymous, notes that some banks, notwithstanding their poor fundamentals, are getting significant volumes of remittance, which is "surprising".
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