The remittance surged by 36.66 per cent in January this year compared with that in the same month of last year due to an increase in the exchange rate of the dollar against the taka that encouraged expatriate Bangladeshis to send their money through the legal channel.
The latest Bangladesh Bank data released on Thursday showed that remittance inflow increased to $1.37 billion in January, 2018 against $1 billion in January, 2017.
Inflow of remittance started to pick up pace in last three months after it had remained subdued for months due mainly to transfer of fund by the expatriates through the illegal channel including the digital channel.
Bank officials said that the exchange rate gap between the illegal channel and the legal channel had declined due to the devaluation of the taka against the dollar that might have encouraged the expatriates to send money through the legal channel.
Besides, inward remittance also witnessed a significant growth in the July-January period of the fiscal year of 2017-18 compared with that in the same period of the previous fiscal year.
According to the BB data, remittance inflow in last seven months increased by 15.89 per cent to $8.31 billion from $7.17 billion in the same period of the previous fiscal year.
Bank officials also said that the central bank’s move to prevent remittance inflow through the illegal channels including mobile financial services was among other reasons for the rise in remittance inflow in January this year.
In January, the private commercial banks received $1.02 billion in inward remittance, while the state-run commercial banks got $331.48 million, foreign commercial banks $12.76 million, and specialised development banks got $11.38 million.
Islami Bank Bangladesh received the highest amount of remittance — $266.12 million — among the private commercial banks, while Agrani Bank got the highest amount — $129.65 million — among the state-run banks.