Bangladeshi wage earners living abroad sent US$1,071.36 million in the first quarter, $1,107.51 million in the second quarter and $1,297.16 million in the third quarter, totaling $3,476 million during July-March period of the 2005-06 fiscal year.

Remittance was $2,822.86 million during July-March period of the 2004-05 financial year, according to Bangladesh Bank statistics.

With the strong flow in March, the country's foreign exchange reserve stood at $2,926 million as of yesterday.

Remittance has been maintaining a healthy flow since December with around $430 million a month on an average. Inflow in December, February had also been the record highest.

"Recent depreciation of taka against US dollar has encouraged the non-resident Bangladeshis (NRBs) to send more money back home," explained a central bank official, hoping that the trend would continue in the coming months.

On the other hand, Bangladesh Bank also continues its efforts to encourage NRBs to send their money through official channels. And remittance has become a good source of income for some of the banks with strong network abroad.

The private commercial banks (PCBs) have become more aggressive in remittance business providing quick and reliable services and attracting the Bangladeshi wage earners to send money home through banking channel.

Remittance inflow was $3,848.29 million in the last financial year.

Bangladesh Bank Governor Salehuddin Ahmed last week hoped remittance inflow this financial year would be around US$4.5 billion if the present trend continues.

Pointing out some bottlenecks in smooth flow of remittance, he mentioned lack of easy access to banks and unfavourable investment atmosphere for expatriates are some of the hurdles

Imposition of flat rate for remitting any amount of currency by banks and exchange houses is another bottleneck for lower wage earners, the governor mentioned. "It is difficult to pay £25 for sending £250."

Salehuddin emphasised the need for improving better services by banks and exchange houses and investment-friendly environment to encourage NRBs to remit more in the country.

Bangladeshi wage earners send more than US$ seven billion annually and a substantial portion of the total amount still comes through hundi, an illegal way of transferring money, according to bankers.

They felt that there is still a good scope to see further rise of remittance inflow through official channels.