Bangladeshi Expatriates Boost Economy with $2.25 Billion Remittance Inflow Amid Exchange Crisis
 
In a welcome development amidst foreign exchange challenges, Bangladesh Bank's latest update revealed a significant surge in inward remittances for May. Expatriates sent a total of $2.25 billion, marking a notable 32.35 percent increase compared to the same period last year. This surge also represents a 10.29 percent rise from April this year. March had also seen a substantial inflow of $2.04 billion in remittance, as per central bank data.
 
Insiders attribute this surge to several factors including a favorable exchange rate for the dollar and the approaching Eid-ul-Azha festival, prompting expatriates to send additional funds to their loved ones back home.
 
According to Bangladesh Bank data, the country has received a total of $10.56 billion in remittances from January to May this year. Various initiatives by banks to encourage legal remittance flows have contributed to this boost, resulting in over $2 billion inflow during these five months.
 
Economist Dr. Ahsan H. Mansur emphasized the need for enhancing financial and non-financial benefits to attract more remittances through legal channels. He highlighted the preference for informal channels like Hundi due to higher exchange rates, causing legal remittances to divert. Mansur suggested that the government could introduce incentives such as health cards, insurance coverage, and pension benefits to encourage legal remittance channels, thus curbing the reliance on informal methods.
 
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