Economy
Bangladesh Records $1.93bn November Remittance Amid Dollar Woes
In the farewell month of November, Bangladesh received remittances totaling $1.93 billion, equivalent to 193 crore dollars in local currency (approximately 21,181 crore 75 lakh taka at the exchange rate of 109.75 taka per dollar). This information was disclosed in the recent update from the Bangladesh Bank.
The instability in the dollar market within the country has been a longstanding issue, and the crisis is escalating. Due to the shortage of foreign currency, strict measures have been imposed on imports. The government and the central bank are working to resolve the crisis, resorting to supplying dollars from reserves. However, these efforts have yet to yield a significant improvement in the situation.
Despite a stable supply of dollars for sale from reserves to stabilize the market, various bill payments from reserves are dwindling. The dollar sale has resulted in a reduction of reserves by more than $6 billion in the first five months of the fiscal year 2023-24 (July-November). The net reserves have fallen to $25 billion, and according to BPMEA-6, a further decrease to $19 billion is noted.
Amidst these challenges, there was hope for an increase in remittances to mitigate the dollar crisis. However, November witnessed remittances amounting to $1.93 billion, which is nearly five crore dollars less than the previous month, October. Comparatively, it is more than 33 crore dollars higher than in November of the previous year.
According to the recent Bangladesh Bank report, the November remittances arrived through state-owned banks, totaling 14 crore 42 lakh 60 thousand dollars, through a particular bank, reaching five crore 31 lakh 80 thousand dollars, through private commercial banks, amounting to 172 crore 66 lakh 80 thousand dollars, and through foreign banks, totaling 59 crore 20 thousand dollars. Seven banks, including Rupali Bank, Rajshahi Krishi Unnayan Bank (RAKUB), Islami Bank, Social Islami Bank, Habib Bank, National Bank of Pakistan, and State Bank of India, did not receive any remittance during this period.
Bangladesh faced challenges in remittance inflow during the fiscal year 2022-23, with the pandemic-induced closure of hundi channels contributing to a significant decline. However, in the first five months of the current fiscal year (2023-24), expatriates have sent the highest remittance through official banking channels, amounting to 216.1 crore dollars.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
