Non-resident Bangladeshis (NRBs) sent US$2,170.5 million during July-December period of 2005-06 fiscal year, which was $1,777 during the same period of last financial year.

In December, remittance amounted to $413.63 million, which is an all time high in a single month.

Remittance inflow has so far been able to see a strong growth as the central bank is continuing its efforts to encourage NRBs to send money through the banking channels.

According to sources, NRBs send over US$ 7 billion a year and a significant portion of the total amount is still coming through hundi, an illegal way of transferring money.

Bankers observed there are further scopes to increase remittance through banking channels.

Private commercial banks (PCBs) are now more aggressive in providing quick and reliable service and attracting the NRBs to send their money through banks.

"Some of the private banks are taking services of the globally renowned money transfer companies that have networks around the world and have extended their services to village level," said a top executive of the PCB.

Strong networks at home and abroad helped some PCBs to see a huge growth in remittance business and it has become a major source of their incomes, he explained.

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

The government was under pressure to meet increased expenditure for petroleum products, which pushed the payment of import bill significantly up.

However, increased remittance inflow in the first half and export growth, which was 12.47 percent, during July-October period of FY06 helped the government to offset the pressure.

According to central bank statistics, import payments in July-October period of FY06 amounted to $4.49 billion against $4.03 billion during the same period of the last financial year.

Foreign exchange reserve crossed three billion marks at the end of June last year. But later it came down to $2.6 billion. The reserve is again showing an upward trend as it reached $2.82 billion as on yesterday.