Remittance earnings in September lowest in 41 months

Bangladesh received $1.34 billion in inward remittances in September, marking a 41-month low.

The lowest remittance inflow was last recorded back in April 2020 at $1.09 billion, according to data from the Bangladesh Bank (BB). 

Remittances came in at $1.54 billion in September 2022. As such, the country's year-on-year remittances decreased by around 13%.

Bankers and experts attributed the decline to the higher exchange rate of the US dollar in the open market, which is attracting expatriates towards informal cross-border money-transfer channels like "hundi".

Last month, the country witnessed an 18.78% decline in inward remittances in August compared to the previous month, marking the lowest inflow in the past six months.

The development raised concerns regarding the country's depleting foreign currency reserves and financial accounts.

According to Bangladesh Bank data, the country received $1.6 billion in remittances in August and $1.97 billion in July. In February, the figure stood at $1.56 billion. 

The year-on-year comparison for August also reveals a concerning 21.57% decrease in inward remittances.

Remittance inflow declined despite some 10.74 lakh workers going abroad for employment in the 2022-23 fiscal year, up by 15.59% from the previous fiscal year.