In Bangladesh, there has been a significant divergence in remittance inflows among banks. Some banks have witnessed a drastic drop in remittances, while others have experienced substantial growth. Dutch-Bangla Bank, once a top remittance handler, saw an 80% reduction in remittances, with only $38 million in August 2023 compared to the usual $220-230 million per month. State-owned banks like Sonali Bank also suffered a decline, from $120-130 million to $44 million in August. Conversely, banks like Social Islami Bank and Dhaka Bank reported remarkable increases in remittances due to measures such as e-account openings, expatriate outreach, and additional services.
The root of this disparity lies in a competitive race among banks to offer higher remittance rates, despite regulations capping payments at Tk110 per dollar. Some banks pay as much as Tk116 to exchange houses, leading to a loss for banks following the official rates. The central bank is taking action against banks violating these rules. Additionally, new regulations now govern forward dollar buying and selling rates. Banks can add a maximum of 12.14% to the present dollar rate for forward dollar transactions, with a limit of three months for selling forward dollars.
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