Remittance inflow to Bangladesh rose 12% year-on-year to $2.68 billion in September, driven by a narrowing gap between official and informal exchange rates and stricter anti-money laundering enforcement, according to Bangladesh Bank data.
The inflow also increased by 11% from August’s $2.42 billion.
In the first quarter of FY26 (July-September), total remittance stood at $7.59 billion, compared with $6.54 billion in the same period a year earlier – a 16% year-on-year growth, marking the strongest start to a fiscal year in recent memory.
The consistent rise in remittance has coincided with a gradual improvement in the reserve position. As of 5 October, the country’s foreign exchange reserves stood at $31.5 billion, while under the IMF’s BPM-6 framework, reserves were estimated at $26.6 billion.
Bangladesh Bank spokesperson Arief Hossain Khan said more Bangladeshi expatriates are now remitting through banking channels instead of hundi networks, encouraged by tighter surveillance and improved exchange rate parity.
Among the banks, Islami Bank Bangladesh received the highest remittance of $699 million in August, followed by Bangladesh Krishi Bank with $258 million, Janata Bank with $170 million, and BRAC Bank with $160 million.
The central bank official added that private commercial banks are also seeing higher inflows as the incentive gap between official and informal channels has almost disappeared.
Remittance inflows have been gaining momentum since late 2024, when the government intensified its crackdown on hundi operations and strengthened supervision of foreign exchange transactions.
In FY25, total remittance crossed the $30 billion mark for the first time, rising by a record $6.4 billion year-on-year – the largest increase in the country’s history.
Despite lingering external vulnerabilities and sluggish export growth, policymakers see the effect of remittance gains as a crucial opportunity to rebuild confidence in the economy. Bangladesh Bank now aims to use this breathing space to strengthen macroeconomic stability ahead of the next round of International Monetary Fund (IMF) reform deadlines under the ongoing loan programme later this year.
