Expats from today (October 22) will get Tk 115.5 including Tk 5.50 incentive against every dollar they send to Bangladesh, according to two associations.

Currently, the price of one dollar is Tk 110 while expats will get Tk 115.50.

The Bangladesh Foreign Exchange Dealers' Association (Bafeda) and the Association of Bankers, Bangladesh (ABB) took the decision in a joint meeting on Friday.

The new price for expatriate income has come into effect this morning.

In order to attract remittances, the government introduced a 2 percent incentive in 2019 and it was later raised to 2.5 percent. Now banks will provide up to 2.5 percent from their own reserves.

However, the traders have to sell per dollar at Tk 110 in the local maket, decision was made during the association meeting.

According to bank officials, the decision is aimed at giving a much-needed boost to remittance flows. It is hoped that this new decision will encourage expatriates to send remittances through legitimate channels. Hundi’s strength will decrease by this decision.

Inflow of remittance dropped to a 41-month low of $1.34 billion in September despite a record outflow of workers in recent times. 

BDST: 1435 HRS, OCT 22, 2023
MSK/SMS