remittance
Remitters will get Tk 107.5 per dollar instead of Tk 108 from Oct 1
Expatriate Bangladeshis will get maximum Tk 107.5 per US dollar instead of Tk 108, for remittance from October 1, 2022.
Association of Bankers, Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) have set this rate for remittance next month – to stabilize the forex market.
Economists are saying controlling the exchange rate would have negative impact on the current inward remittance flow.
Read: Bangladesh received over $1 billion remittance in Sep 1-15
Economist and Chairman of PRI, Ahsan H Mansur, told UNB that this is not the right decision to attract more remittance when the kerb market rate is over Tk 114 per dollar.
It may encourage sending money through illegal channels, which does not help in resolving the forex crisis, he said.
Professor Mustafizur Rahman, distinguished fellow of CPD, also said that controlling exchange rate is not helpful when market demand for forex is expanding.
Read:Uniform rate: Tk 108/dollar max for remittance, Tk 99/dollar for export income from tomorrow
He said several rates for US dollar will create discrepancies and discourage remittance flow.
The illegal sector will be encouraged while exchange rate difference between banks and kerb market will be widened, Prof. Mustafizur said.
According to the decision of the meeting held on Monday, remitters will get maximum Tk 107.5 per US dollar. Earlier on September 11, ABB and BAFEDA fixed the maximum price of a dollar at Tk 108 for remittance.
Read Explainer: What it means to let taka float
The dollar rate of export income monetization will remain at Tk 99 per dollar as before. In the case of payment of import liabilities and inter-bank transactions, price of dollar will be Tk 1 higher than the average price of a dollar bought from expatriate and export earnings.
At the end of the meeting, BAFEDA Chairman Afzal Karim told the reporters, “There was supposed to be a price review from time to time to keep the dollar market normal.”
“In continuation of this, we have decided the new price. The new price will be effective from October 1,” he said.
Read How to safely send remittance to Bangladesh?
Bangladesh received over $1 billion remittance in Sep 1-15
Bangladesh received inward remittances worth over USD $1008.67 million (1,000 million = 1 billion) in the first 15 days of September, amid the forex crisis in the country.
Bankers said remittance inflow shows an upward trend as the remitters are encouraged by the depreciation of taka and they get more than Tk 108 per dollar.
The remittance inflow is expected to cross $2 billion in September.
Read: Uniform rate: Tk 108/dollar max for remittance, Tk 99/dollar for export income from tomorrow
Bangladesh received remittances of $2.09 billion in July and $2.03 billion in August, which became a blessing amidst forex crisis.
Md Serajul Islam, executive director and spokesperson of Bangladesh Bank told UNB that the central bank has simplified various processes to attract more remittance through banking channels.
The government is also extending remittance incentives as well as providing policy support. Now the dollar rate is getting higher, he said.
Read: Hope amidst forex crisis: Bangladesh received $2.03bn remittance in Aug
The sector insiders said that Bangladesh’s inward remittance flow will grow more as manpower export hit a new high in the past fiscal on a post-pandemic rebound of the overseas job market.
The data of the Bureau of Manpower Employment and Training (BMET) showed over 9.88 lakh workers had gone abroad in the fiscal year FY22 while this figure was 2.71 lakh in FY 21.
This happens to be the highest number of annual overseas jobs in the last seven years.
Read How to safely send remittance to Bangladesh?
It is also contributing to growing up the inward remittance flow in Bangladesh.
Uniform rate: Tk 108/dollar max for remittance, Tk 99/dollar for export income from tomorrow
Association of Bankers, Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) have announced a uniform rate for buying and selling US dollars from foreign exchange houses, following Bangladesh Bank’s decision to keep the currency market stable.
The exchange rate of dollar for inward remittance will be maximum Tk 108 from tomorrow (September 12, 2022). Traders will get a maximum Tk 99 per dollar in terms of export income. And in case of opening import LC, the exchange rate will be determined by averaging the exchange rate of remittance and export.
Md. Afzal Karim, chairman of BAFEDA and managing director of Sonali Bank, announced the exchange rate after a meeting with ABB leaders today.
Also read: ABB, BAFEDA will meet tomorrow to set uniform dollar rate for banks
The dollar kerb market has become unstable again after an interval of around 20- 25 days.
Today, the US dollar was selling at Tk 114 to 114.5 in the kerb market while banks sold dollars for LC at Tk 101 to 106. Bangladesh Bank sold dollar at Tk 95 today.
A syndicate is trying to create instability in the foreign exchange market again – to gain profits from illegal dollar stock, economic intelligence reported to the central bank, a director of the latter told UNB.
Read How to safely send remittance to Bangladesh?
The report stated, “Banks’ rate of dollar increased while kerb (open) market became unstable. Taking advantage, cash dollar traders are making a profit.”
Talking to various commercial banks and exchange houses, the UNB correspondent learnt that a dollar is being sold at Tk 114 in Motijheel, Dilkusha and Gulshan areas of the capital.
The commercial banks are taking Tk 101 to 106 per dollar at the import level. And cash dollar is selling at Tk 106 to 108.
Read Bangladesh performing well in 3 major economic indicators, data shows
Earlier, the dollar rate rose to Tk 120 in the kerb market on August 10 and 11 this year.
President of Money Exchangers’ Association of Bangladesh, AKM Ismail Haque, told UNB, “The price has not increased much. Today, we are buying dollars at Tk 106 and selling at Tk 107.5.”
When asked about selling at Tk 113 to Tk 114, he said that legitimate people do not sell dollars at a higher prices.
Also read: Illegal dollar trade: BB summons account details of 28 exchanges
According to earlier decision, the banks will determine price of the dollar. The price of dollar will be different in every transaction, including remittance, export earnings, and import bill settlement. But the banks will buy and sell dollar at the same price in different segments. And the maximum profit in trading per dollar will be Tk 1.
Bangladesh Bank extends retention period to 30 days for repatriating export income
Bangladesh Bank has extended the retention (holding) period to 30 days for repatriating export income in foreign currency, to make transactions more flexible.
Foreign Exchange Policy Department of Bangladesh Bank issued a notification in this regard today (September 6, 2022) and sent it to Authorized Dealers (ADs) bank for immediate effect.
The notification stated that to make trade transactions flexible, it has been decided to extend the retention time to 30 days, from 15, for utilization of the fund to settle import liabilities of relevant exporters.
Read: Social stability now economy’s main challenge: Planning Minister
The fund may also be transferred to other ADs, within this prescribed time of 30 days, for settlement of import payments and/or EDF liabilities against admissible bulk imports of relevant exporters, the Bangladesh Bank circular said.
It means, henceforth the exporting individual or organization will be able to hold dollars for up to 30 days, with which back-to-back letters of credit (LCs), other EDF and import liabilities can be settled.
At the same time, the saved income can be transferred to another bank.
Read How to safely send remittance to Bangladesh?
Before transferring funds, ADs need to satisfy their payment obligations by documentary evidence. ADs transferring the fund will make foreign exchange available to relevant ADs through foreign currency clearing accounts maintained with Bangladesh Bank.
How to safely send remittance to Bangladesh?
According to the Ministry of Expatriates' Welfare and Overseas Employment, 13 million Bangladeshis reside overseas, making it the fourth-highest number among the top 20 countries of immigration. The amount of remittances received through the banking system in July was $2.09 billion, the most in the previous 14 months. The expatriates send money to Bangladesh in diverse ways. However, not all ways are safe. Let's discuss some legal and safe ways to send remittances to Bangladesh from anywhere in the world.
8 Secured and Easiest Ways to Send Remittance to Bangladesh
bKash
Expatriate Bangladeshis living abroad can easily and conveniently send money to the respective bKash accounts of their relative's in Bangladesh through authorised and listed Foreign Banks, Money Transfer Organizations (MTOs), and Money Exchange Houses.
To send money from abroad to a bKash account in Bangladesh, visit authorised and partner bank branches/money exchanges/MTO agents. Then, provide the recipient's bKash account number and full name (while opening the bKash account).
Read Bangladesh performing well in 3 major economic indicators, data shows
After that, pay the required amount and request the bank/money exchange/MTO agent to carry out the money transfer process. In this way, anyone can receive remittance in minutes directly in the bKash number.
Besides, if you have a Wise account, you can also send money to Bkash through Wise.
Rocket
The expatriates living overseas can send money to family members in Bangladesh via Rocket - the mobile banking service of Dutch Bangla Bank. To send money, the remitter has to visit any nominated Exchange Houses of Dutch-Bangla Bank located near his or her place. The expatriate can also check out whether the other nearby Bangladeshi Banks offer the service of sending money to Bangladesh via Rocket MFS.
Then, the person needs to provide the Beneficiary's Name, Bank Name (Dutch-Bangla Bank ), and Rocket account number. The transferred money will be available in the beneficiary's Rocket number within 24-72 hours. As soon as the transfer is completed the receiver will get the SMS right away.
Read Hope amidst forex crisis: Bangladesh received $2.03bn remittance in Aug
MoneyGram
MoneyGram is one of the most well-known money transfer services in the world. MoneyGram has approximately 176,000 global agents in 180 countries and territories. Sending money using MoneyGram is instant. That means if you send money from abroad to someone's name or bKash number in Bangladesh using MoneyGram, it will reach the country immediately.
The receiver can pick up the money from any MoneyGram agents or bank accounts by providing their NID photocopy and the tracking number provided by the sender. Remitters can even send the money to the receiver's bank account directly.
For sending money to Bangladesh from abroad, the expatriate needs to contact the nearest bank or financial institution marked with the MoneyGram logo. Then, the customer services will supervise and carry out the rest process. More information can be extracted from the MoneyGram website. After that, the sender can know the details of the money-transfer process by clicking on the live chat box available on their website.
Read Banks report $1.72 billion inward remittances till August 25
Western Union
Western Union is one of the most trustworthy and authorised ways to send remittances to Bangladesh. When an expat wants to send money back home, s/he needs to contact a designated agent of Western Union and fill out a form. While making the payment to the Western Union agent, the remitter needs to specify the recipient's name, address, and amount on the form.
After that, the agent will provide a reference number to the sender. This reference number is called MTCN. Usually this number has 10 digits. It is basically a money transfer tracking number.
With that number, anyone can check the status of the transfer. If this MTCN number is given to the recipient, then the recipient can directly withdraw money from any agent or Bank.
Read Bangladesh receives $2.09 billion remittance in July; highest in 14 months
Apart from this, if the sender gives the bank account information to the agent while sending the money, the money will be deposited directly into the account.
Wise
It was known as Transferwise previously. It is an online money transfer service, which means an expat can send money using a debit/credit card or bank account.
To use this service, an expatriate is required to open an account on the official website of Wise. Then the sender needs to provide the recipient's details and pay the desired amount to Wise. Once the transaction is completed, transferred money should be available in 7 to 24 hours.
Read BB allows floating exchange rate of US dollar amid pressure
Xoom
Xoom is a money transfer service owned by PayPal. This platform can be used to send money from the USA to other countries. To send the money, the sender must have a Xoom account, which they can open online on the Xoom website. Xoom has 2 options, cash pickup, and bank deposit.
If you want to take cash pickup, you can collect cash from your nearest cash point. The list of cash points can be found on Xoom's website. In the case of the bank deposit option, the sender has to log in to Xoom, then input the recipient's bank details and pay the money. The remittance will be credited to the receiver's account within 2-3 days.
Ria Money Transfer
It is available in around 160 countries. Anyone can receive money in 149 countries, including Bangladesh. They have both an online money transfer system and an offline transfer system through agent locations.
For the online transfer, an expatriate can just use a debit, credit card, or bank account to pay the desired amount. Then, Ria will send the money to the receiver's account.
Read BB moves to encourage greater flow of remittance to boost forex
To transfer via an agent, expatriates need to visit their nearby agent's location and pay the money to them. Whether the remittance is sent via online or through an agent, the money will get transferred within a few hours. Then, the receiver can pick up cash or receive it in a bank. account.
Remitly
Like Xoom, Remitly is an online based money transfer system available in 135 countries. The transfer system is the same as the Xoom and Wise.
However, they have a partnership with a few Bangladeshi banks, which include Sonali Bank, Islami Bank, Prime Bank Limited, Janata Bank, Dutch Bangla Bank, Standard Chartered, Mutual Trust Bank, and Agrani Bank Limited. So, the expats can easily send remittances via Remitly and the receivers can withdraw cash from these Banks.
Final Words
A significant portion of Bangladeshi citizens stay outside the country for work. However, many expatriates face problems while sending their hard earned money to their family members and relatives living in Bangladesh. While searching for an easy platform to send money some expatriates fall prey to the illegal or risky ways and become victims of scams.
Read BGMEA chief urges expats to contribute more to Bangladesh's development
The Government of Bangladesh recommends legal ways to send remittances to Bangladesh. To encourage legal ways of sending remittances in Bangladesh, the government is providing 2.5% incentives.
So far, we have discussed 8 platforms to send remittances to Bangladesh safely. All of these money transfer providers charge some fees for the transfer. The amount of fee depends on the location and exchange rates. The receivers don't need to pay any charge, as the sender will cover the fees.
Bangladesh performing well in 3 major economic indicators, data shows
Amidst the global financial crisis, Bangladesh is performing well in three key economic important indicators- exports, remittance, and private credit growth.
The latest data of different economic indicators show that despite the global crisis, Bangladesh is turning around in export of garment items.
In the first five months of this calendar year, Bangladesh’s garment exports to the European Union have increased by 45 percent. In addition, from January to June of this year, the export of clothing products to the US market has increased by 60.30 percent.
Not only Europe-America, but overall exports from Bangladesh increased by 14.72 percent in the first month of the current fiscal year 2022-23, in July, compared to the same period of the previous fiscal year. And in June, the export growth of Bangladesh was 37.19 percent.
Also read: Economy has unease, but no crisis: Shamsul Alam
Not only exports, remittance, and private credit growth show also a positive development in recent times.
In the first month of FY 2022-23, goods worth $3.98 billion have been exported.
According to Export Promotion Bureau (EPB) data, the country crossed the $50 billion milestone for the first time in the last FY 2021-22 with exports worth $52 billion.
According to the report, readymade garments contributed the most to the growth as usual. Last month, exports in this sector were worth $3.36 billion. As such, 84.49 percent of the total exports is apparel products. And compared to July of the last financial year, the export of this product has increased by 16.61 percent.
Also read: Economy needs transitional policy to overcome the crisis: Debapriya
Meanwhile, according to data of the European statistical agency Eurostat, the import of clothing products from Bangladesh has increased by 44.95 percent from January to May this year.
$9.58 billion worth of clothing items have been imported till this time, the report said.
BB data shows, in July private credit growth of Bangladesh reached 13.96 percent to Tk 13.52 lakh crore.
Bank officials say that many have taken up new projects. Many others are increasing productivity. Housing, car, and personal loans have also increased this year due to low-interest rates. In addition, the price of the dollar has increased by more than 20 percent in the last four months.
Read Hope amidst forex crisis: Bangladesh received $2.03bn remittance in Aug
Although in the announced monetary policy till December this year, the growth in private sector credit is targeted 13.6 percent. As a result, the monetary policy target of credit growth has already been exceeded. Despite much inflation, consumers are borrowing more. Because the loan interest rate is still around 9 percent.
According to the latest data of BB, Bangladesh's inward remittance flow worths USD $2.03 billion in August. It is showing hope to ease the forex crisis through this upward trend of remittance.
In July, the first month of FY 2022-23, expatriate sent $2.09 billion remittance, which was highest in last 14 months. The inward remittance flow was $1.87 billion in July and $1.81 billion in August in FY 2021-22.
Md Serajul Islam, executive director and spokesperson of Bangladesh Bank (BB) told UNB that the central bank has simplified various processes to attract more remittances in banking channels.
Read BB allows floating exchange rate of US dollar amid pressure
The government is also extending remittance incentives as well as providing policy support. Now the dollar rate is getting higher, he said.
The sector insiders said that Bangladesh’s inward remittance flow will grow more as manpower export hit a new high in the past fiscal on a post-pandemic rebound of the overseas job market.
The data of the Bureau of Manpower Employment and Training (BMET) showed over 9.88 lakh workers had gone abroad in the fiscal year FY22 while this figure was 2.71 lakh in FY 21. This happens to be the highest number of annual overseas jobs in the last seven years.
Officials hope the outflow of workers would increase in the current fiscal year as Malaysia is going to restart hiring manpower from the country, following a negotiated deal.
Read BB moves to encourage greater flow of remittance to boost forex
Hope amidst forex crisis: Bangladesh received $2.03bn remittance in Aug
Bangladesh received inward remittance worth USD 2.03 billion in August — raising hope amidst a forex crisis.
In July, the first month of FY 2022-23, migrant workers sent home $2.09 billion remittance, said a Bangladesh Bank report.
The inward remittance flow was $1.87 billion in July and $1.81 billion in August in FY 2021-22.
Also read: Bangladesh receives $2.09 billion remittance in July; highest in 14 months
Bangladesh received $21.03 billion remittance in FY 22, showing a 15 per cent fall from $24.77 billion inward remittance in FY 21. The remittance flow in the first two months of the current fiscal year is providing a glimmer of hope for forex reserve — crucial to meet the growing import demands.
Md Serajul Islam, executive director and spokesperson of Bangladesh Bank, told UNB that the central bank has simplified various processes to attract more remittances through banking channels.
The government is also extending remittance incentives as well as providing policy support. Now the dollar rate is getting higher, he said.
Also read: Banks report $1.72 billion inward remittances till August 25
The sector insiders said that Bangladesh’s inward remittance flow will grow more as manpower export hit a new high in the past fiscal thanks to the post-pandemic rebound of the overseas job market.
The data of the Bureau of Manpower Employment and Training (BMET) showed over 9.88 lakh workers had gone abroad in FY 22 while this figure was 2.71 lakh in FY 21.
This happens to be the highest number of annual overseas jobs in the last seven years.
Read How to safely send remittance to Bangladesh?
Officials hope the outflow of workers would increase in the current fiscal year as Malaysia is going to restart hiring manpower from the country, following a negotiated deal.
The statistics showed that a low number of 271,445 workers found jobs in FY 21 during the peak pandemic while 498,983 in FY 20, 659,044 in FY 19, 866,417 in FY 18, 893,736 in FY 17, and 672,721 in FY 16.
Banks report $1.72 billion inward remittances till August 25
The remittance inflow moved slightly upward in the first 25 days of this August as Bangladeshi expatriates sent out more than $1.72 billion through the official banking channels, according to data submitted to the Bangladesh Bank by different banks.
Bangladesh received $2.92 billion inward remittances in July, thanks to Eid-ul-Azha when Bangladeshis living abroad sent more money to families to celebrate one of the biggest festivals for Muslims.
The expatriates sent $1.81 billion in remittances in August of the last fiscal year.
Also read: Bangladesh receives $2.09 billion remittance in July; highest in 14 months
Amid declining foreign exchange reserves due to rising import bills, many private sector banks are now bringing home more remittances than the public sector ones.
Different private banks are buying dollars at a higher rate than state-owned ones, which is helping them attract more remittances.
From 1 to 25 August, Islami Bank received $356.23 million, Agrani Bank $110.12 million, and City Bank 109.43 million in remittances.
Pubali Bank received $5.48 million, Dutch-Bangla Bank $95.38 million, and Rupali Bank $93.53 million.
Also read: Bangladesh receives $1.64 billion remittance in 21 days of July:BB
Bangladesh saw its inward remittance drop by 15.12 percent to $21.03 billion year-on-year in FY22 after growing by more than 36 percent to $24.78 in FY21.
It is mentionable though, that the drop is made steeper by the fact that the inward remittance figure for FY21 was an all-time record.
Bangladesh receives $2.09 billion remittance in July; highest in 14 months
Bangladeshi expatriates have sent inward remittance worth USD $2.09 billion in July, first month of current fiscal year, Bangladesh Bank (BB) report said.
The BB report released on Monday stated that the remittance flow of July is the highest in 14 months.
The bankers and concerned people said that the holy Eid-ul-Azha is celebrated in July. Expatriates usually send additional money to their relatives during the Eid.
Also read: Bangladesh receives $1.64 billion remittance in 21 days of July:BB
Md Serajul Islam, executive director and spokesperson of BB told UNB that the central bank has simplified various processes to attract more remittance through banking channels.
The government is also extending remittance incentives as well as providing policy support. Now the dollar rate is getting higher, he said.
"Besides, last month was Eid-ul-Azha, expatriates sent money to celebrate the family's Eid festival beautifully. Remittances have increased due to these reasons. I hope this trend will continue,” Serajul said.
Also read: Digitalization: Global remittances flows expected to reach US$5.4 trillion by 2030
In June, the ending month of the last fiscal year, the expatriates sent $1.83 billion inward remittance through the banking channel.
Bangladesh received the highest $24.77 billion inward remittance in FY2020-21, amid global movement restrictions along with air flight due to the worsening situation of Covid-19 pandemic.
After that in FY 22 remittance income fell to $21.03 billion.
Read BB allows floating exchange rate of US dollar amid pressure
The sector insiders and experts believed that around $2 billion remittances entered Bangladesh on illegal paths despite different initiatives, including incentives as stimulus to send remittance in the legal channel.
Sources said a number of Bangladeshi expatriates in the Middle East, Malaysia, the USA, and Europe who cannot send money to the country in the banking channels lack valid documents.
As a result, they have to depend on the illegal hundi and other informal channels for sending their earnings to relatives in Bangladesh.
Read BB moves to encourage greater flow of remittance to boost forex
Bangladesh receives $1.64 billion remittance in 21 days of July:BB
Bangladesh received US $1642.75 million (1.64 billion) inward remittance till July 21, thanks to Eid-ul-Azha when Bangladeshi migrants sent more money to families to celebrate one of the biggest festival of Muslims, according to data from Bangladesh Bank.
It means, on an average the expatriates sent $78.22 million remittance in to the country during July 01-21, the opening month of the fiscal year 2022-23.
In June, the last month of the fiscal year, the expatriates sent home $1.83 billion remittance through the banking channel, said the BB figures available on Monday.
Also read: Digitalization: Global remittances flows expected to reach US$5.4 trillion by 2030
Bangladesh received the highest $24.77 billion remittance in FY2020-21, amid global travel restrictions amid Covid-19 pandemic.
In FY 22 remittance income fell to $21.03 billion following the lifting of travel restrictions and sending of money through unofficial channels, people involved with the issue said.
The sector insiders and experts suspected that around $2 billion remittances entered Bangladesh through unofficial routes despite stimulus incentives offered by the government to use official channel.
Also read: Cash incentive on remittance to remain unchanged at 2.5 per cent
Sources said a good number of Bangladeshi workers in the Middle East, Malaysia, the USA and Europe failed to send money through proper baking channels for lack of valid documents.
This led to the increasing use of illegal hundi and other informal channels by the expatriates, they said speaking on conditioned they can’t be identified.
According to BB, during July 1 and 21 , six state-owned bank received $254.92 million inward remittance, 2 specialized banks received $27.69 million, and 41 private commercial banks received $1356.22 million while 9 foreign commercial banks received $3.94 million.