Remittance crosses $2.0b in April

With more than 21 per cent increase compared to the same month last year, money transfers from Bangladeshi expatriates abroad soared to $2.043 billion in April, according to official data, providing some respite for the economy amid a persistent foreign exchange shortage. This brings the total remittance earnings for the first ten months of FY24 to $19.11 billion -- almost 90 per cent of $21.61 billion earned in the entire FY23. Bangladeshi expatriates sent $2.043 billion in April, which coincided with the country's largest religious festival Eid-ul-Fitr, according to Bangladesh Bank data. This is a year-on-year increase of over 21 per cent, as the remittance inflow in April 2023 was $1.68 billion. Compared to the previous month of March 2024, there was a slight increase in remittance inflows. In March, the country received $1.99 billion. In the recent months of December, January, February and March, the country received $19.91 billion, $21.13 billion, $21.65 billion and $19.97 billion in remittances, respectively. Speaking on condition of anonymity, a Bangladesh Bank official said remitters usually send more money home during festivals like Eid to meet the increased financial needs of their families. "With Eid-ul-Fitr falling in April, we saw an increase in remittance inflow. This is a positive sign for the economy, which is currently under stress due to the foreign exchange shortage," the central bank official said. The official was optimistic about a further rebound in remittance inflows, citing the upcoming Eid-ul-Azha festival -- another peak remittance-earning period. Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank (MTB) PLC, said that there was a slight increase in inward remittance flows in just passed April, which is a positive sign for the country. "We have seen some stability in remittance earnings in recent months," the experienced banker said. "I hope this continues." The fast-depleting forex reserves have become a matter of serious concern for the $460 billion-plus Bangladesh economy, which faces difficulties even to achieve the net international reserve (NIR) target set by the International Monetary Fund (IMF) in a $4.7 billion lending package for restoring the country's macroeconomic stability. A visiting IMF team is currently assessing progress on the targets set before releasing the third tranche of the loan. During meetings with the central bank, the team has expressed concerns about Bangladesh's failure to meet both the NIR and revenue targets. The country's gross forex reserves stood at $25.37 billion on April 30, 2024, as calculated by the Bangladesh Bank. However, the IMF uses a different methodology -- BPM6 -- and reports the reserves at $19.96 billion as of the same date. [email protected]
Published on: 2024-05-02 20:56:49.496591 +0200 CEST