Bangladesh received USD $1.70 billion inward remittance in December 2022 through the banking channel, up by 4.23 percent compared to the same month of the previous year.

In November, the expatriates sent home $1.59 billion through the legal channel, according to Bangladesh Bank an updated report released on Sunday.

The central bank has been trying to increase inward remittance flow through banking channels by offering incentives and higher exchange rates of the US dollar.

Read: BB moves to encourage greater flow of remittance to boost forex

A review of the remittance flow showed that the total remittance received in the first 6 months of the fiscal year 2022-23 (July- December) was $ 10.49 billion.

In the same period of the previous financial year, the expatriates sent $10.24 billion in remittances. Accordingly, in the first 6 months of this fiscal year, Bangladesh received $287 million more in remittances.

The BB spokesperson Mesbaul Haque told UNB that in order to increase remittance inflow, the central bank has increased the exchange rate of US dollar.

Read: Bangladesh received $357.76mn remittance in first week of Oct

In addition to a 2.5 percent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said.

Banks will not cut any charge or fee for sending remittances in the legal channel, he said.

Research by Bangladesh Bank found that more than 40 percent of remittance of expatriate income is sent in the country through hundi or unofficial channel.

Read More: Banks to stop charging any fees for handling remittances