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July remittance up 22pc

STAR BUSINESS REPORT
Remittance inflow in the country witnessed a robust 22 percent boost in July, the first month of the current financial year.
The non-resident Bangladeshis (NRBs) sent US$349.77 million in July 2005 while the amount was $286.67 million during the same month of the last fiscal year.
The total remittance inflow was $3,851.49 million in the last financial year, according to the Bangladesh Bank statistics.
"Devaluation of local currency in recent weeks and strong monitoring by the central bank are the main reasons for a substantial rise in remittance flow into the country," said a top official of Bangladesh Bank.
Referring to recent depreciation of taka against dollar, the official
said it will encourage the remitters to send more money.
The present trend of remittance inflow would help ease ongoing pressure on foreign exchange market to some extent, the BB official hoped.
Besides, the ongoing correction in exchange rate against greenback may also help see more remittance inflow, he added.
BB, on the other hand, took a number of initiatives to increase the flow of remittances through banking channel instead of illegal 'Hundi'.
"Remittance inflow through banking channel has improved significantly in recent times. Moreover, anti-money laundering act is becoming stringent in different countries, discouraging people to send money through other channels," said a banker of a nationalised commercial bank (NCB).
Private banks are also taking different measures to increase their earnings from remittance services and signing deal with international service providers who have strong networks across the globe, he added.
"Some private banks are marketing their remittance services very aggressively and providing quick and secured services to the clients, which will push remittance inflow in the coming months," the official felt.
Sonali Bank, Agrani Bank, Pubali Bank, and Islami Bank Bangladesh Ltd are the major players handling the remittance inflow.
According to sources, NRBs send roughly US$ 7 billion every year and a significant amount of the total amount still comes through hundi, an illegal way of transferring money.