TDS Desk:

Ahead of the upcoming Eid-ul-Fitr, there has been a significant increase in remittance flow to the country. In the first 14 days of March this year, expatriate Bangladeshis sent $2.20 billion in remittances through banking channels, which is 35.70% more than the same period last year.

Bangladesh Bank Spokesperson and Executive Director Arif Hossain Khan confirmed the matter on Sunday (March 15) afternoon.

Bankers say that the tendency of expatriates to send money increases during Eid, which is mainly due to the increase in remittance flow during this time.

A senior official of a private bank said that expatriates send more money to meet family expenses before Eid. However, remittance flow usually decreases slightly after Eid.

He also said that the ongoing geopolitical tensions in the Middle East may also affect the remittance flow in the future.

If expatriates working in the region face problems in their work due to the Iran-Israel conflict, there is a risk of a negative impact on the flow of remittances sent through banking channels.

According to bank sources, banks are offering Tk121.70 to Tk121.75 per dollar to buy expatriate dollars on Sunday.

On the other hand, the dollar price for import bills or LC settlements has been set at around Tk121.20.

Meanwhile, bankers believe that the policy stance of the central bank is also affecting the dollar market.

Recently, the new governor of Bangladesh Bank Md Mostakur Rahman and economists’ meeting indicated a cautious stance on reserve conservation.

This has created an impression in the market that the central bank will not sell dollars easily. As a result, banks have started buying expatriate dollars at a relatively higher price.

According to bankers, if investment activities increase in the future, the demand for imports will increase and the demand for dollars may also increase. Keeping that possibility in mind, banks have already become interested in collecting dollars.