Remittance inflows to Bangladesh saw an increase in August compared to the previous month, with expatriates sending more money through formal channels following significant political changes on August 5.

Data from Bangladesh Bank reveals that remittance inflows rose to $2.22 billion in August, up from $1.91 billion in July. For comparison, the figure was $1.59 billion in August 2023.

The decline in remittance inflows in July was attributed to a curfew and internet blackout imposed by the then Awami League-led government starting July 18, amid student protests against perceived discrimination.

Additionally, some expatriates, distressed by the violence and disruptions, began a campaign encouraging people to use informal money transfer systems, or hundi, instead of official banking channels.

The curfew was relaxed on July 24, allowing offices and banks to operate during specific hours, and mobile internet services were restored on July 28.

The remittance inflow began to rise following the resignation of Prime Minister Sheikh Hasina and her subsequent departure to India on August 5 amid a student-led uprising.

Nobel laureate Muhammad Yunus assumed office as the head of Bangladesh’s interim government on August 8.

Bankers noted that the sudden change in leadership prevented many individuals associated with the Awami League-led administration from fleeing abroad, which helped mitigate the exodus of large sums of dollars.

According to the International Monetary Fund, the country’s foreign currency reserves decreased to $20.59 billion as of August 28.

Meanwhile, the interbank dollar rate increased to Tk 120 each on Sunday, up from Tk 117 each on May 8.

For the fiscal year 2024, remittance inflows reached $23.9 billion, an increase from $21.6 billion in FY23.