Remittance inflow to Bangladesh plunged 21.47 percent year-on-year to $1.59 billion in August, according to central bank data released today.

The amount of funds sent by Bangladeshi migrant workers was $2.03 billion in the same month last year.

On a month-on-month basis, the remittance inflow slumped 19 percent in August from $1.97 billion in the previous month.

Bankers said the remittance inflow has fallen in recent months mainly due to the huge gap between formal and informal exchange rates, meaning a portion of the remittance earnings comes to Bangladesh through illegal channels.

Banks now offer Tk 109.50 per dollar for remitters while the exchange rate in the informal market is between Tk 117 and Tk 118 per dollar, they said.