Bangladesh has registered a record surge in remittance inflows, exceeding $25 billion in the first 10 months and seven days of the current fiscal year — breaking all previous records even before the fiscal year concludes.
This milestone surpasses the earlier highest remittance figure of $24.77 billion, achieved in the entire 2020–21 fiscal year, according to data from the Bangladesh Bank.
The development was confirmed on Monday by Bangladesh Bank spokesperson Arif Hossain Khan.
Remittances — the money sent home by Bangladeshis working abroad — play a vital role in supporting the country’s economy. They are a key source of foreign exchange and help finance the trade deficit, build foreign currency reserves, and stabilise the local currency.
Banking experts and economists have attributed the record-breaking inflow to several significant changes in the remittance ecosystem in recent months.
Since the interim government assumed office in August last year, there has been a notable decline in the use of hundi, an informal and illegal money transfer system widely used in South Asia.
Previously, hundi was preferred by many due to its favourable exchange rates and minimal formalities. However, under the current administration, enforcement against money laundering and illegal transfers has intensified, making unofficial channels riskier and less attractive.
Simultaneously, the exchange rate offered through official banking channels has become more competitive, surpassing what was previously available through informal methods.
This shift has encouraged expatriate Bangladeshis to remit money through legitimate banking routes.
Moreover, the 2.5% cash incentive offered by the government to remitters through formal channels remains in place, further boosting the attractiveness of official transfers.
This policy was originally introduced to encourage legal remittances and continues to play a key role in shaping remittance behaviour.
As a result of these combined factors, remittance through banking channels has surged, contributing to a significant improvement in the foreign currency liquidity position of banks.
The inflow has also alleviated the dollar shortage that previously strained the country’s financial system and import-dependent sectors.
Analysts believe this trend, if sustained, could support macroeconomic stability, ease pressure on the balance of payments, and help the central bank better manage the exchange rate amid global economic uncertainties.