The World Bank’s report predicts a surge in remittances to Bangladesh, expected to hit $23 billion in 2023.

The Global Knowledge Partnership on Migration and Development (KNOMAD), a part of the Washington-based lender, states that remittance growth is currently at 7%. According to the report, these flows are estimated to hold steady at $23 billion in 2024.

However, the growth in formal remittances might not see an increase due to the lasting effects of a recent balance of payment crisis. This crisis caused exchange controls, resulting in parallel market exchange rate premiums.

The report highlights that depreciation and exchange rate management policies have driven migrants in countries like Bangladesh to utilize both informal and formal channels for fund transfers.

These policies have led to a scenario where migrants take advantage of black-market premiums for transferring funds.