Remittances reach $1.726b in November's three weeks
Inflow from US sees steady growth in FY25
FE REPORT | Monday, 25 November 2024
An ongoing inward-remittance rebound brought Bangladesh US$1.726 billion during the first 23 days of this month, official count shows, as a steady inflow from the USA also added some momentum.
In October, remittance inflows had totalled $2.395 billion, also marking a robust performance, the central bank said.
People familiar with the matter told the FE that two key factors contributed to the steady inflows: expatriates' growing confidence in improved governance within the banking sector and their tendency to send higher remittances towards the end of the calendar year.
A senior official at the Bangladesh Bank appeared upbeat about continuity of this robust trend in remittance receipt through the outgoing month of November.
"To my mind, this is due to measures taken by the central bank to build trust and improve governance in the banking industry," the official said, requesting anonymity.
For the fiscal year 2024-25, July-October worker-remittance inflows stood at $8.937 billion, reflecting nearly a 30-percent increase compared to the same period in the previous fiscal year.
Dhaka Division-wherein lies the centripetal capital of Bangladesh-received the highest share of remittances, amounting to $1.133 billion or 47.34 per cent of the total inflows in October, according to a report prepared by the Bangladesh Bank and released Sunday.
Chattogram Division, hosting the country's main seaport, ranked second with $690 million or nearly 29 per cent of total remittances in the past month (October). Sylhet Division secured the third position with $217 million, accounting for 9.10 per cent of the aggregate.
Dhaka district also topped the district-wise list with $577.7 million in October, Chattogram district followed with $162.04 million, Cumilla with $101.76 million, and Sylhet with $82.93 million.
In its latest monthly report, the central bank has highlighted a critical role remittance plays in maintaining economic stability amidst global uncertainties and domestic challenges that include pressures on the country's foreign-exchange reserves.
"Amid inflationary pressures, exchange-rate fluctuations, and rising import costs, remittances have provided much-needed relief by bolstering foreign-currency reserves and supporting millions of households across the country," the BB report reads.
The central bank underscores that the steady flow of remittances has been a stabilising factor, contributing to poverty reduction, improved living standards, and regional development.
The BB report also reveals that remittances from the United States, a key source of foreign earnings for Bangladesh, showed a steady upward trend in the first four months of FY2024-25. Inflows from the USA amounted to $238.96 million in July 2024, increasing to $293.47 million in August.
The 22.8-percent month-on-month growth underscores the resilience of Bangladeshi expatriates in sending money back home despite global economic uncertainties.
Remittances include cash and kind flowing in through formal channels, such as electronic wire, and through informal channels, such as money or goods carried across borders.
September 2024 witnessed a significant surge, with remittance receipts climbing to $387.87 million, account for a 32.2-percent rise compared to the previous month.
And October set a new record, with remittance inflows reaching $497.9 million-an impressive 28.4-percent increase from September.
The report states that among top 30 countries, remittances from the United Arab Emirates (UAE) were the highest $1.03 billion during the July-to-October period of this fiscal year.
Inflows from the UAE amounted to $ 333.70 million in October, increasing to $ 361.72 million in September, the BB data showed.