Bangladesh’s remittance inflow dropped to $1.97 billion in July 2023, a 5.86% decline compared to the previous year, according to the Bangladesh Bank. The fall is attributed to the celebration of Eid-ul-Azha in July, resulting in lower remittances following the higher months before the festival. Experts believe that Bangladesh should be receiving more than $2 billion in monthly remittances, highlighting the need to combat illegal channels and promote market-based exchange rates.
To address the situation, the government has increased exchange rates and continued offering a 2.5% incentive to remitters. The latest data from the Refugee and Migratory Movements Research Unit (RMMRU) also indicates that Bangladesh’s formal remittance inflow during the pandemic should reflect an annual figure of $24.77 billion. Market-based solutions and incentives are expected to stabilize remittance inflows, supporting the country’s economy during the ongoing USD crisis.
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