Bangladesh’s foreign currency reserve has experienced a slight respite due to the inflow of remittances ahead of Eid-ul-Fitr, with expatriates sending over $1.1 billion during the first 17 days of April.

“Till Monday, the remittance inflow topped $1.1 billion,” said Mesbaul Haque, executive director at Bangladesh Bank, speaking to the Daily Sun on Tuesday, the last banking day before Eid.

The foreign currency reserve stood at $31.11 billion as of Tuesday, compared to $44.16 billion in the corresponding period last year. Inward remittance had reached a record high for the year in March, totaling $2.02 billion with a 29 percent month-on-month growth.

Throughout April, expatriates sent an average of $58.88 million per day, compared to $65.09 million in March and $53.37 million in February.

However, Policy Research Institute executive chairman Ahsan H Mansur remains concerned about the growing pressure on foreign exchange reserves.

“The banks are struggling to open import bills due to the shortage of dollars. Besides, the economic intake is declining. At this moment, ahead of Eid, we expect more inflow of remittance. The inflow of $1.1 billion may cause a relief for the forex reserve which is under pressure,” Dr. Mansur told the Daily Sun. Mansur, a former International Monetary Fund staff member, praised Bangladesh Bank for its efforts to protect the reserve amidst the challenging balance of payment situation.

Association of Bankers Bangladesh (ABB) former chairman Syed Mahbubur Rahman noted that banks had set higher remittance targets for April in anticipation of the Eid celebrations.

“We transacted over $2 billion in March. Comparing to the previous month, the inflow in April would be higher marking the Ramadan and Eid. We expect some addition to $1.1 billion by the last week of this month,” said Syed Mahbubur Rahman, managing director at Mutual Trust Bank.

Expatriates sent approximately $10.42 billion during the first six months of the current fiscal year 2022-23, according to Bangladesh Bank data.

Economic think tank Policy Exchange chairman Dr. Masrur Reaz believes that a single month’s performance is insufficient to make a comprehensive assessment of remittance inflow trends.

“We should think for a long period, at least six months to find out the growth point in remittance inflow. On average, expatriates sent $1.5 billion per month. If the transaction continues sustainably, it would be positive,” Dr. Masrur, a former World Bank staff member, told the Daily Sun.

Last year, Bangladesh Bank relaxed the rules regarding the 2.5 percent incentive for remittance, allowing expatriates to benefit if they send money home through official channels.