Bangladesh received over $1 billion as remittance in just 16 days of August, a good sign amid the ongoing volatility in the country’s foreign exchange market.

Bangladeshi expatriates sent $1,171 million between August 1 and August 16, up 16.30 per cent year on year, as per the latest data from the Bangladesh Bank.

The remittance earning was at $1,007 million at the same period of last year.

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Remittance earning had slowed in the recent months due to mainly the gap of US dollar rate between the kerb market and banking channels, said industry insiders.

After several months, the remittance earning crossed $2 billion in July of this year.  In July, the country received $2.2 billion as remittance, as per the BB data.

Still now, there are Tk 8 to Tk 10 gap of US dollar rate between the kerb market and banking channels, which prompted Bangladeshi expatriates to use hundi system, an illegal cross border transaction, said a high official of BB.

In this situation, the Bangladesh Foreign Exchange Dealers' Association (BAFEDA) urged to the government through the central bank to increase the cash incentive against wage earners' remittances to 5 per cent from existing 2.5 per cent.

The apex body of foreign exchange dealers recently sent a letter to the BB in this regard.