In May, Bangladesh received fewer remittances from abroad due to the currency crisis. The amount of remittances received in the past month was roughly USD 1.69 billion (169 crore 16 lakh). This was 10.27% less than it was during the same time last year.
When compared to April of the previous year, remittances also decreased by 16.26% in April. This was made known in the Bangladesh Bank’s update on international transfers.
According to bankers, remittances are often robust before Eid. The expatriates send additional money to their families in Bangladesh to cover their Eid expenses. However, remittances were poor even in April, which was Eid month. In May, this pattern continues.
The highest rate at which the banks may currently purchase remittance is Tk 108.50 per dollar. On June 1st, this rate went into effect. On the instruction of the central bank, the banks increased the dollar price for remittance in response to the decline in remittance. Previously, the cost of sending money abroad in dollars was Tk 108.
The hundi (informal money transfer) exchange rate for the dollar is approximately Tk 110. Banks would be fined by Bangladesh Bank if they pay more per dollar than the set rate. Because of this, banks are unable to obtain financing at greater costs.