Economy
Bangladesh Remittance Inflows Dip 7.77% in March
Bangladesh witnessed a notable decrease in inward remittances by 7.77% to US$1.99 billion in March, deviating from the expected increase ahead of Eid, according to the latest data released by Bangladesh Bank on Monday.
This decline comes as a surprise, especially since February recorded a high of $2.16 billion in remittances from Bangladeshis living abroad, marking an eight-month peak.
The usual trend sees a spike in remittances as expatriates send more money home to support their families during Eid. However, this period has shown an unexpected downturn.
Industry insiders attribute the fall to an increase in remittances sent through unofficial channels, or Hundi, prompted by more favorable exchange rates for the US dollar outside the formal banking system.
Economist Dr. Ahsan H. Mansur highlighted that remitters are opting for Hundi, where the exchange rate is Tk 5 to 7 higher per US dollar, over official channels. This shift has sparked concerns about the impact on the country’s foreign exchange reserves.
Bangladesh Bank’s executive director and spokesperson, Md Mezbaul Haque, remarked that despite the dip in March, the flow of inward remittances has risen through legal channels due to governmental and banking incentives.
Haque remains optimistic that remittance figures will rebound in April, citing measures taken by the central bank to encourage remittances through formal avenues. These include directives for banks to offer additional incentives from their resources, complementing the government’s existing 2.5% incentive on expatriates’ incomes.
“By allowing banks to purchase dollars at an additional 2.5% higher rate, we aim to make the legal channels more attractive for sending remittances,” stated Mezbaul, underscoring efforts to counter the reliance on informal remittance routes and stabilize the remittance inflow.
Expatriate Bangladeshis sent approximately US$ 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.
