Expatriates have sent home a whopping $915.91 million in the first 12 days of 2024, a record surge that’s boosting the country’s foreign currency reserves and raising hopes for a sustained flow of remittances.
Economists and bankers highlight it as a positive signal for depleted reserves, especially compared to 2023’s figures. December saw $1.07 billion in the first 15 days, while November started with a mere $794.4 million.
State-owned banks led the charge, bringing in $81.86 million, followed by specialized banks ($10.17 million), private commercial banks ($820.54 million), and foreign banks ($3.34 million). Islami Bank remains the top remittance collector, raking in an impressive $335.29 million.
The government’s 2.5% incentive on remittances is likely playing a role. This policy makes sending money home cheaper and more attractive for Bangladeshis abroad. Dr. M Masrur Reaz, an economist, believes the recent slight appreciation of the taka against the dollar also contributed, encouraging hesitant remitters to finally send their earnings.
December 2023 already saw a record single-month inflow of $1.98 billion, a 2.59% increase over November. 2023 in total brought in $21.82 billion, a modest but encouraging 2.54% year-on-year rise. With Ramadan and Eid-ul-Fitr on the horizon, this trend is expected to rise more.