The remittance inflow to the country in August dropped down to $1.6 billion making it the lowest in the last six months possibly due to a higher rate of the dollar in the open market, which lures expatriates towards hundi – an informal cross-border money-transfer method.

Besides, year-on-year remittances declined by 21.57%. 

Additionally, August of this year saw the lowest remittance inflow in the past four years. 

The last time the inflow was low was back in February, when Bangladesh received $1.56 billion in remittances, according to central bank data. 

Remittances through the country's bank channels totaled $1.97 billion in July.

Accordingly, remittances decreased by 18.78% compared to July. According to the Bangladesh Bank, remittances amounted to $2.04 billion during the same period last year. 

According to bankers, banks are offering a remittance dollar rate lower than the market rate, leading to a decrease in the flow of remittances through the banking channel. 

During August, the dollar was priced at Tk109 in the banking channel. 

Earlier on 31 August, the Association of Bankers, Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association (BAFEDA) increased the remittance dollar price by Tk0.50 to Tk109.50. Besides, the government announced the incentive on the remittance exchange rate at 2.5%.

Earlier, remittances from expatriate Bangladeshis declined by 10.27% in July, amounting to $1.97 billion, according to central bank data.

As per the Bangladesh Bank, the country received $2.19 billion in remittances in June this year and in July last year, the amount was $2.09 billion.

Bankers attribute the decrease to the usual trend of lower remittance inflow in the month following Eid-ul-Adha, which was celebrated in June when people typically send more money back to the country.