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TL;DR
- August saw a significant increase in remittances to Bangladesh, exceeding $2 billion in the first 28 days.
- This rise follows a dip in July, which recorded the lowest remittance figures in ten months due to student protests and banking disruptions.
- Political changes occurred with Prime Minister Sheikh Hasina resigning on August 5, followed by the formation of an interim government.
- Efforts to boost remittance inflows have shown positive results, crucial for addressing Bangladesh’s foreign exchange crisis.
In August 2024, Bangladesh saw a significant rise in expatriate remittances, surpassing $2 billion within the first 28 days. This increase marks a recovery from July, which recorded the lowest remittance figures in ten months due to disruptions from student protests and temporary banking service shutdowns.
Data from Bangladesh Bank indicates that $2.07 billion in expatriate income was received by August 28, compared to $1.43 billion during the same period in the previous year. This represents a $640 million increase year-on-year. In July, remittances amounted to approximately $1.91 billion, highlighting a rebound in August.
The decline in July’s remittances was partly due to bank closures from July 19 to July 23, linked to public holidays and the student quota reform movement. Internet service disruptions also affected foreign transactions.
Political changes in early August included the resignation of Prime Minister Sheikh Hasina on August 5, amid mass protests. An interim government led by Nobel laureate Muhammad Yunus was formed on August 8, stabilizing the situation.
In June, expatriates sent $2.54 billion home, the highest monthly remittance in three years. This surge is crucial for addressing Bangladesh’s foreign exchange crisis, worsened by increased import costs following the Russia-Ukraine war. The country’s reserves, which peaked at $48 billion during the COVID-19 pandemic, have decreased due to rising import expenses and insufficient growth in remittances and exports.
Efforts by the government and central bank to boost remittance inflows have shown positive results, despite July’s temporary decline. The August increase provides a needed boost to Bangladesh’s economy amid ongoing foreign exchange challenges.
Source: Prothom Alo
