Expats send $813m in remittances in 10 days of August

Amid various discussions and concerns about the country's economy, Bangladesh expatriates have sent around 813 million US dollars in remittance in the first 10 days of August. Converted to local currency, the amount sums up to Tk 7,804 crore (96 taka per dollar).

If the current trend continues, the amount of expatriate income may reach up to 243 million dollars at the end of the month, according to data revealed by Bangladesh Bank on Thursday (August 11).

According to the sector concerned, the gap of dollar rate between banks and open market remains wide. Foer this, expats tend to send money through hundi than legitimate channels.

The central bank is providing around Tk96-98 against each dollar, along with 2.5% government incentives. In total, the amount stands at Tk100. However, the dollar sells in the open market at Tk118-Tk120. This means that remittances coming through other channels than banking channels are getting more money, due to which the remittance flow through legitimate channels is less. Therefore, it will be difficult to increase expatriate income if the gap between banks and open market is not reduced.

Bangladeshi expatriates sent foreign currency equivalent to 209 million 69 million US dollars to the country in July. According to the current exchange rate of the local currency, this amount is about TK 20,000cr, about $260 million more compared to June.

According to the data of the Central Bank, in the financial year 2021-22, expatriate Bangladeshis sent remittances of 21.03 billion US dollars to the country through banking channels, which is 15.11 percent less than the previous financial year. In the fiscal year 2020-21, expatriates sent remittances of two thousand 477 crore 77 lakh (24.77 billion) dollars.

The central bank has been continuously lowering the value of the rupee against the dollar to increase the flow of remittances to solve the foreign exchange crisis. Now in the interbank currency market, every dollar has to be bought at Tk 95. That is, Bangladesh Bank is selling dollars to the banks at this rate to meet the government import bill. As per rules, this is the official rate of the dollar.

However, it has been found out in various banks and curb markets, the banks are taking Tk 100 to 110 for import bills, selling cash dollars at the rate of Tk 108 to 110 Thursday. Meanwhile, dollars are being sold at the rate of 118 to 120 taka in open market or curb market outside the bank.