Two billion dollar remittance came in March

According to data from the Bangladesh Bank

In recent months, Bangladesh has witnessed significant inflows of remittances totaling approximately $1.99 billion in March, equivalent to 21,965 crore taka in local currency. These remittances play a crucial role in the country's economy, contributing to its foreign exchange reserves and supporting the livelihoods of many families.

Remittance Inflow Analysis

According to data from the Bangladesh Bank, remittances in March were channeled through various avenues, including state-owned banks, specialized banks, private banks, and foreign banks. State-owned banks received a substantial portion, totaling 26 crore 17 lakh 70 thousand dollars or 2 thousand 879 crore taka. Additionally, Krishi Bank received over 3 crore 52 lakh 7 thousand US dollars.

Private banks also played a significant role, receiving 169 million 17 million dollars or 18 thousand 590 million taka, while 81 lakh 10 thousand US dollars came through foreign banks. However, it is noteworthy that some banks did not receive any remittance during this period, including Bangladesh Development Bank, Rajshahi Agricultural Development Bank, Community Bank, Citizens Bank, Habib Bank, National Bank of Pakistan, and State Bank of India.

Comparison with Previous Months

The remittance inflow in March follows a trend of increasing remittances observed in previous months. In January, the country received remittances of 2.10 billion dollars, followed by 2.166 billion dollars in February. December 2023 saw remittances amounting to 199 million dollars.

Dollar Crisis Mitigation

The influx of remittances comes amidst efforts to mitigate the dollar crisis in Bangladesh. Several initiatives have contributed to easing the crisis, including decreased imports due to stringent measures by Bangladesh Bank and increased remittances and export earnings. The relaxation of restrictions on the dollar exchange has also played a role in reducing the crisis.

Impact of Global Events

The report highlights the impact of global events, particularly the Russia-Ukraine war, on Bangladesh's economy. The escalation of the conflict led to increased prices of fuel and food products in the world market, putting pressure on import costs for Bangladesh. However, measures such as imposing strictures on opening Letters of Credit and requiring cash deposits against LC opening have helped alleviate import liabilities and reduce pressure on the dollar. 

The significant inflow of remittances in March reflects the importance of expatriate income to Bangladesh's economy. Efforts to mitigate the dollar crisis through various measures have shown positive results, although challenges remain amid global uncertainties. Continued attention to remittance inflows and effective management of the dollar crisis are essential for sustaining economic stability and growth in Bangladesh.