Bangladesh has set a new record for remittance inflow in just the first 26 days of March. According to Bangladesh Bank, expatriate Bangladeshis sent over $2.94 billion in remittances by Wednesday last (March 26). On top of that, more than $100 million arrived yesterday alone. This means the country has already surpassed the $3 billion mark in a single month—four days before March ends. The previous highest monthly remittance record was set last December when Bangladesh received $2.63 billion.
Bank officials say remittance inflows always see a sharp rise during Ramadan and Eid, but this year’s growth has been unprecedented. Since both Ramadan and March have aligned closely, expatriates have been sending more money throughout the month. Beyond seasonal factors, crossing the $3 billion milestone is a major achievement for the economy. The surge also indicates a decline in money laundering and hundi (informal money transfer) activities.
Bangladesh Bank spokesperson Arif Hossain Khan stated, “In just two days—March 25 and 26—remittances amounted to $197 million. Between March 1 and 26, the total inflow reached $2.94 billion. In comparison, during the same period last year, remittances stood at $1.61 billion. This means remittance inflows have grown by 82.4 percent this month.”
Since the fall of the Awami League government following the mass uprising, Bangladesh has seen a sharp rise in remittance inflows. In December 2024, expatriate Bangladeshis sent a record $2.63 billion in remittances—the highest in the country’s history at the time. Before that, the second-highest remittance inflow was in July 2020, when $2.59 billion was sent amid the COVID-19 crisis. The third-highest was in June 2024, with $2.53 billion coming in.
According to Bangladesh Bank, from July 1 to March 26 of the ongoing 2024-25 fiscal year, Bangladesh received a total of $21.44 billion in remittances. At the current exchange rate of BDT 122 per dollar, that amounts to approximately BDT 2.61 trillion. In comparison, during the same period of the 2023-24 fiscal year, remittance inflows stood at $16.69 billion. This means expatriates have sent $4.75 billion more this year, marking a growth of about 28.4 percent.
If this growth continues, Bangladesh is set to reach new heights in remittance earnings, says Syed Mahbubur Rahman, Managing Director of Mutual Trust Bank. Speaking to Bonik Barta, he explained, “The demand for hundi (illegal money transfers) abroad is largely driven by money laundering from within Bangladesh. A significant portion of illegally transferred funds is sourced from major labor markets abroad. Since the mass uprising, opportunities for money laundering from Bangladesh have narrowed, reducing the demand for hundi operators overseas. When demand in the black market drops, remittance flows through legal channels increase. The surge in remittances we are witnessing in the banking sector is a direct result of this shift.”
Syed Mahbubur Rahman emphasized that to sustain the current growth in remittances, stricter action must be taken against money launderers. “If money laundering is curbed, hundi operations will also decline. This will encourage more expatriate Bangladeshis to send money through legal channels. At the same time, the government needs to offer more incentives and benefits to those who play such a crucial role in our economy,” he said.
According to Bangladesh Bank, the highest remittance inflow in a single fiscal year was recorded in 2020-21, when expatriates sent a record $24.77 billion amid the COVID-19 pandemic. In the fiscal year before that (2019-20), remittances stood at $18.2 billion. The figures for 2021-22 and 2022-23 were $21.03 billion and $21.61 billion, respectively. In 2023-24, remittance inflows saw an uptick, reaching $23.91 billion.
Bank officials believe that if the current trend continues, remittances could exceed $28 billion in the 2024-25 fiscal year.
Meanwhile, remittance inflows have also helped boost the country’s foreign exchange reserves. Over the past week alone, reserves have increased by approximately $330 million. On March 20, reserves stood at $19.97 billion under the BPM6 standard, and as of yesterday (March 27), they had risen to $20.3 billion.
Economist Dr. Mustafa K Mujeri pointed out that due to the lack of good investment opportunities in the country, most of the money sent by expatriate Bangladeshis is being spent on consumption. Speaking to Bonik Barta, the Executive Director of the Institute for Inclusive Finance and Development (InM) said, “A large portion of remittances goes toward household expenses of expatriates’ families. Whatever is left is mostly used for building houses or buying land. If there were better investment opportunities for expatriates, remittance money could play a much stronger role in the economy.”
He further explained, “There is a Wage Earner Development Bond for expatriates, but there isn’t much awareness or promotion about it. Many expatriates who have savings to invest struggle to find viable options in Bangladesh. The stock market isn’t in great shape either. If the government could create more investment opportunities for expatriates, the ongoing foreign currency crisis could be significantly eased.”