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Record remittance pushes reserves to $6bn PDF Print E-mail
Thursday, 07 August 2008

Agency

Expatriate Bangladeshis sent US$ 829.5 million in remittance in July – the previous highest remittance of $ 808.7 million came in March 2007 – edging the foreign exchange reserves to near $ 6 billion.

According to Bangladesh Bank, like the outgoing year the trend of increased remittance inflow continued at the beginning of the current fiscal year.

In the first month of last fiscal year the remittance inflow was $ 567.1 million and in July this fiscal year the remittance inflow was $ 268.4 million higher than the corresponding month in the last fiscal year.

"In the outgoing fiscal year record 8 billion Us dollar remittances flowed into the country. We hope the amount will reach 10 billion US dollars in the current fiscal year. We already see the signs," Bangladesh Bank governor Dr Salehuddin Ahmed told bdnews24.com.

The central bank chief said remittance was contributing more than the readymade garment sector did to the economy. He said a considerable amount of money earned from RMG sector is spent on buying raw material (back-to-back letters of credit).

According to Bangladesh Bank's Forex Reserve and Treasury Management Department, in the outgoing 2007-08 fiscal year the expatriate Bangladeshis sent in $ 7.94 billion in remittance, which is 33 percent higher than the previous fiscal year's (2006-07). They had sent $5.98 billion remittance in fiscal year 2006-07.

The remittance inflow in July last year was $567 million. However, during Jan-June period of last fiscal year remittance inflow was more than $ 700 million on average every month.

As the remittance and export earnings rose in the last week of June the central bank's reserves topped $ 6000 million. At one stage in July the reserves rose to $ 6250 million. At the time $800 million was paid in import bill to Asian Clearing Union (ACU), resulting in the drop of reserves to $5400 million.

In the last few days the reserves surged back to near $6 billion. On Tuesday the central bank had a reserve of $5900 million.

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