The remittance inflow to Bangladesh increased in August compared with that in the previous month, as expatriates sent more money through formal channels following the changes in the country鈥檚 political landscape on August 5.
According to Bangladesh Bank data, the remittance inflow rose to $2.22 billion in August from $1.91 billion in July. The figure was $1.59 billion in August 2023.
The remittance inflow declined in July due the imposition of a curfew and internet blackout starting on July 18 by the then government led by Awami League amid student protests against discrimination, bankers said.
Additionally, some expatriates, distressed by the nationwide violence, casualties and internet blackout, initiated a campaign urging people to avoid sending remittances through official banking channels.
The demand for hundi, an informal money transfer system, increased then due to growing tensions and insecurity.
The curfew was relaxed on July 24, allowing offices and banks to operate during specific hours, and mobile internet services were restored on July 28.
The remittance inflow began to rise after Sheikh Hasina resigned as prime minister and fled to India on August 5 amid the student-led mass uprising.
Nobel laureate Muhammad Yunus took office as the head of Bangladesh鈥檚 interim government on August 8.
Bankers said that the sudden fall of Sheikh Hasina prevented many individuals associated with the Awami League-led administration from fleeing abroad, which helped curb the exodus of large sums of dollars.
The country鈥檚 foreign currency reserves, according to the International Monetary Fund guidelines, dropped to $20.59 billion on August 28.
The interbank dollar rate increased to Tk聽120 each on Sunday after a rise to Tk聽117 each on May 8.
The remittance inflow reached $23.9 billion in FY24, up from $21.6 billion in FY23.
