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chiefly put a positive impact on remittances.

On January 1, the government increased the cash incentive for sending remittance through the banking channel to 2.5 per cent from 2 per cent.

Between July and January this fiscal year, remittances stood at $11.94 billion, down 20 per cent year-on-year.

Against the backdrop, the country’s foreign exchange reserve, which stood at the $48-billion mark for the first time in August last year, commenced to face an incessant downward trend.

The reserves stood at $45.13 billion on January 26.

The government’s move to raise the cash incentive has already started to provide a breathing space in managing the macroeconomy.

Rahman said the exchange rate gap between the dollar and the taka had also reduced in the kerb market compared to the banking sector due to the increase in cash incentive, which is why the expatriates opted for the formal channel in sending their hard-earned money.

Rahman said export of workers abroad had also started in recent months, pushing remittances up.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said many banks faced a lack of adequate foreign exchange in settling their import bills.

“So, the lenders have put in their efforts to mobilise more remittances from abroad, bringing a positive effect to the inflow,” he added.