Remittances to Bangladesh fall to $ 1.65 billion in October

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| Update:
Nov. 02, 2021, 12:17 p.m.


The flow of inbound remittances declined further in October after money transfers through informal channels such as hundi resurfaced after a lull caused by the coronavirus pandemic.

Money sent by Bangladeshis working abroad stood at $ 1.65 billion in October 2021, down $ 79 million from the previous month, according to the latest central bank statistics.

Last September, remittances totaled $ 1.73 billion. It was $ 2.10 billion in October 2020.

The flow of inbound remittances fell nearly 20 percent to $ 7.05 billion in the current fiscal year (FY) July-October period, 2021-2022, from $ 8.81 billion. dollars over the same period of the previous fiscal year, Bangladesh Bank (BB) data showed.

“The larger spread between the exchange rate of the formal banking channel of the US dollar against the local currency and the parallel market has encouraged illegal activities of hundi in recent months,” a senior official told FE on Monday. ‘a large private commercial bank.

At present, there is a difference of about Tk 4.0 between the free market spot dollar exchange rate, known as the restricted market, and the net telegraph transfer rate (TT) for shippers.

Banks offered an average rate of Tk 84.7481 to senders for TT on Monday, according to the Bangladesh Currency Traders Association’s daily report.

On the flip side, the US currency was trading at around Tk 90 in the parallel market that day as demand for the greenback increased recently.

“The current downward trend in incoming remittances could continue in the near future if hundi operations persist,” the private banker predicted.

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