Bizdata Insights

Remittance inflow reached $1598 million (around $1.6 billion) in the first 24 days of the current March, which is $36 million more than it did for the entire month of February, according to the most recent information from Bangladesh Bank (BB). The total amount of remittances in February of this year was $1561 million. Nonetheless, since the start of the current fiscal year, remittances have totaled $15.6 billion as of 24 March.

According to the March remittance influx, it may reach $2 billion by March 31. A top BB official predicts that the remittance inflow would likely continue to increase in the upcoming month of April. State-owned banks that accept remittances received $195.67 million in the first 24 days of the running month of March. Foreign commercial banks received $4.85 million, private commercial banks received $1361.54 million, and specialized banks received $35.47 million.

Seven banks didn’t get any money transferred throughout those days. The bank that receives the most remittances is Islami Bank Bangladesh Limited. Out of $1598 million distributed among 59 banks, the bank received $371 million on its own. Three out of the nine overseas banks received no remittances. The highest was 3.89 million by Standard Chartered Bank. Agrani Bank was the state-owned institution that received the most remittances. In the first 24 days of March, it brought in $79 million.

The amount of foreign currency held by the country’s commercial banks increased to a 14-month high in February as a result of increased remittance and export profits as well as import restrictions.

From $4,849.28 million in January, the gross foreign currency balance with banks increased to $5,240 million in February. According to data from Bangladesh Bank (BB), the gross holding of foreign exchange by banks climbed for four straight months, reaching $4,708 million in December, $4,708 million in November, and $4,505 million in October.

Since July 2021, when commercial banks held $6.00 billion in foreign currencies, banks’ holdings of foreign exchange have decreased, according to the statistics. On February 28, Bangladesh’s foreign exchange reserves fell to $32.33 billion as Bangladesh Bank expanded dollar sales to address the market’s dollar crisis. As a result, within a year, the exchange rate versus the US dollar increased significantly, rising to Tk 107 from Tk 84.8. On September 14, 2022, the BB approved a floating dollar exchange rate.

The amount of foreign currency held by the country’s commercial banks increased to a 14-month high in February as a result of increased remittance and export profits as well as import restrictions.

From $4,849.28 million in January, the gross foreign currency balance with banks increased to $5,240 million in February. According to data from Bangladesh Bank (BB), the gross holding of foreign exchange by banks climbed for four straight months, reaching $4,708 million in December, $4,708 million in November, and $4,505 million in October.

Since July 2021, when commercial banks held $6.00 billion in foreign currencies, banks’ holdings of foreign exchange have decreased, according to the statistics. On February 28, Bangladesh’s foreign exchange reserves fell to $32.33 billion as Bangladesh Bank expanded dollar sales to address the market’s dollar crisis. As a result, within a year, the exchange rate versus the US dollar increased significantly, rising to Tk 107 from Tk 84.8. On September 14, 2022, the BB approved a floating dollar exchange rate.