Remittance shock continues in Nov since introduction of single exchange rate
The inflow of remittance continues to suffer in November since the single exchange rate was imposed for all banks back in September.
From September to November, the country received an average $1.5 billion per month in remittance, according to the Bangladesh Bank sources.
Prior to this move, expatriate Bangladeshis sent $2.09 billion and $2.03 billion in July-August respectively.
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The country earned $4.65 billion in remittance in three months from September to November this year, which was $4.92 billion in the same period of the previous financial year.
Accordingly, remittances decreased by $267 million, which is more than 5% compared to the previous year.
Highlighting the disadvantage of single exchange rate, a private bank Managing Director (MD) said many banks used to exchange remittances at higher rates for foreign currencies as per their needs.
"As there is a single exchange rate of remittances for all public, private and foreign banks, they are unable to collect remittances outside of the market rate, so the flow of remittances is low," argued the banker.
He also noted, "As a large number of workers are going abroad from the country, it is a matter of great concern that the amount of remittances is going down. The central bank should figure out the exact reason for this."
