Remittances declined 11 per cent year-on-year to $1.54 billion in September, the lowest in seven months.

The decline may intensify pressure on both the government and Bangladesh Bank as the country is struggling to manage its macroeconomic stability owing to the higher inflation and US dollar shortages, central bank officials said.

The inflow in September also fell by 24.4 per cent from the previous month when expatriate Bangladeshis sent $2.04 billion.

A Bangladesh Bank official says that the decrease in remittances has already put an adverse impact on the foreign exchange reserves, which stood at $36.44 billion on September 28, down 6.7 per cent from August 31.

Remittances, however, increased 5 per cent year-on-year to $5.67 billion in the first quarter of the current fiscal year.

If the declining trend of remittances continues in the days ahead, the ongoing volatility in the foreign exchange market will deepen, said the BB official wishing not to be named.

The central bank should motivate banks to mobilise more remittances with a view to easing the ongoing stress on the foreign exchange market.

The local currency faced a major depreciation in recent months due to the shortage of the US dollar amid falling reserves.

The exchange rate stood at Tk 107.5 per dollar on September 29, down 25.7 per cent year-on-year, data from the BB showed.