Remittances drop 10% in May due to increased hundi transactions 

The country’s remittance inflow dropped by about 10.27% in May, which bankers attribute to a weaker dollar exchange rate for expatriates’ income and an increase in transactions through hundi.

According to the central bank data released on Thursday, Bangladesh received $1.69 billion in May via banking channel from its expatriates.

Expatriate Bangladeshis prefer hundi – an informal cross-border money-transfer method – over the official banking system because it offers a lower exchange rate than the open market, according to bankers.

Besides, remittances decreased due to a lower rate of dollar price compared to the open market, said the bankers.

The country received $2.02 billion remittances in May, which is the highest in the last six months.

The central bank data said, remittances in the first 11 months of the current fiscal year 2022-23 stood at $19.41 billion, which was $19.19 billion in the same period of the previous fiscal year. 

As a result, remittances increased by $1.13 billion compared to the previous year.

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