Following the departure of former Prime Minister Sheikh Hasina, remittance inflow to Bangladesh has surged, with large crowds of migrant workers seen actively sending their hard-earned money home at money exchanges in Kuala Lumpur, Malaysia’s capital, on 12 August.
During the six days before and after Sheikh Hasina’s exit, remittances to Bangladesh totaled only $95.65 million. However, from 7 August to 10 August, the figure skyrocketed to $387.12 million. In the first 10 days of August alone, a total of $482.77 million in remittance has entered the country, according to a recent report by Bangladesh Bank.
Sector officials explained that the decline in remittance last month was due to a remittance shutdown declared by migrant workers in response to the quota reform protests and the subsequent crackdown by the Hasina government.
Experts attribute the recent increase in remittance inflow to the workers’ renewed confidence in the interim government.
In July, remittance inflow hit its lowest point in 10 months. While $2.5 billion was sent to Bangladesh in June, the figure dropped to $1.91 billion in July, as per the Bangladesh Bank’s reports.
“The foreign exchange houses received less remittance on Sunday, but the amount significantly increased on Monday. If migrant workers continue to send remittance through legal channels, the ongoing dollar crisis will ease,” stated the head of the Treasury division of a bank.
According to the head of the Treasury division of an Islamic bank, a substantial amount of remittance arrived today from countries such as the United Arab Emirates, Malaysia, Singapore, and the United Kingdom.
“Since Sheikh Hasina’s removal, remittance inflow through informal channels like hundi has completely stopped. Additionally, practices like money laundering, over-invoicing, and under-invoicing have also ceased. I expect remittance inflow through hundi to remain minimal during the interim government’s tenure,” said the official.
