BD receives $1.69 billion remittance in 26 days of April

Inward remittance during the first 26 days of April shows a significant upswing, driven by potent government policy interventions and proactive measures implemented by the countrys commercial banks.

According to Bangladesh Banks (BB) latest data remittance in 26 days of April was $1.69 billion and bankers say it is likely to cross $2 billion at the end of the month.
Amongst the various banks, three private commercial banks have emerged as frontrunners in attracting the highest volumes of remittance during this period. These banks are Islami Bank Bangladesh PLC which has received $465 million, BRAC Bank PLC $105.62 million and the third highest recipient is Social Islami Bank Limited at $91.93 million.

Besides, state owned banks received $160.18 million, specialized banks $89.8 million, private commercial banks $1425.63 million and foreign commercial banks $5.36 million during the 26 days period. However, seven banks received no remittance during this period.  

Bangladesh government has enacted a series of targeted policies to encourage remittance through formal channels. These measures include: lower fees associated with sending and receiving money through banks making them more lucrative option for remitters, according to a senior official at the central bank.

Besides banks are offering attractive exchange rates, further incentivizing remitters to utilize legal channels. It expedites short processing times streamlining procedures and ensuring faster transfer funds to recipients.

Commercial banks in Bangladesh are actively vying for a larger share of remittance. Key strategies employed by these institutions include network expansion including branch networks and establishing agent banking particularly in remote areas, to improve accessibility for remitters.

Apart from that, digital system is becoming user-friendly. Online and mobile app interfaces are streamlining the remittance process, making it faster and more convenient.

The combined effect of these initiatives is already evident in the preliminary data for April 2024. The first 26 days of the month accounted for more remittance inflows reaching a staggering USD 1.68 billion.

This robust momentum suggests a high probability of exceeding USD 2 billion remittance by months end, which bankers say would establish a new record for April.