Remittance increases ahead of Eid
$1b remittances have reached in first 9 days of this month
The remittance flow has increased significantly ahead of Eid.
After more than $2 billion remittances last month, around $1 billion remittances have reached the country in the first nine days of this month.
According to the latest data of the central bank, $919 million remittances reached the country in the first nine days of this month (May).
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In the first week of May last year (May 1-7), $344 million remittances came. Last year, however, Eid-ul-Fitr was held in the last week of May.
Analysts said remittance inflows usually increase during the two Eids, Bengali New Year and the last month of the year. In addition, due to the outbreak of Covid-19, many people are sending money to the country for the treatment of Covid affected relatives.
Distinguished Fellow of the Centre for Policy Dialogue (CPD) Mustafizur Rahman thinks that there will be a rise of remittances next Eid as well. It will come down later.
He said that the flow of remittances through legal channels is increasing due to the closure of illegal routes due to the ongoing pandemic.
According to the central bank, remittances from July to May 9 this year reached $21.6 billion, up nearly 42% from the same period of the last year.
Due to the high inflow of remittances, the foreign exchange reserves reached $45 billion on 3 May, though the reserve touched such a milestone for one day only.
On 4 May, reserves fell to $44 billion after paying $1.74 billion as import costs. On 9 May, the reserves stood at $44.26 billion.
