In a significant economic development, Bangladesh recorded a notable surge in inward remittances, receiving $1.98 billion in October, marking the highest influx in the past four months. This boost in remittances is attributed to the appreciation of the dollar rate and an increase in incentives for expatriates.
Data released by the central bank reveals that in October, expatriates sent an impressive $643 million more in remittances compared to September, reflecting a remarkable growth rate of 48.20 percent. September had seen remittances at $1.33 billion, marking the lowest figure in the past 41 months.
The surge in remittances this October can be primarily attributed to the recent increase in the remittance incentive rate. The incentive rate was raised from 2.5 percent to 5 percent at the end of this month, providing added motivation for expatriates to remit more funds to Bangladesh.
However, when looking at the broader picture for the first four months of the current fiscal year 2023-24 (July-October), Bangladesh received a total of $6.88 billion in remittances. This figure, while substantial, reflects a 4.36 percent decrease compared to the $7.19 billion received during the same period in the previous fiscal year.
