In a remarkable turn for wage earning landscape of Bangladeshi workers abroad, remittance inflows are soaring –setting new records and reshaping the country’s economic outlook.
Following a record-breaking $3.29 billion in remittances during March, Bangladeshi expatriates have already sent $1.72 billion (Tk 20,984 crore) in the first 19 days of April alone. This equates to an average of over $90 million (Tk 1,104 crore) arriving daily, underscoring a historic surge in legal remittance channels.
This uptick, according to central bank officials, is directly tied to two key factors: A decline in hundi operations (informal money transfer systems), and parity in exchange rates between the open market and official banking channels.
“With the dollar rate now aligned across banks and open markets, remitters are more confident about using formal channels,” said a senior official from the Bangladesh Bank. “Money laundering has slowed, and legal remittances are on the rise—boosting both reserves and economic stability.”
Where the money comes from
According to the Bangladesh Bank's latest data: State-owned banks received $639.7 million, Krishi Bank, one of the two specialised banks, pulled in over $90 million, private banks led the tally with nearly $990 million, and foreign banks processed around $3.32 million.
However, eight banks—including BDBL, RAKUB, and Padma Bank—reported no remittance inflow during this period. Foreign banks such as Habib Bank, National Bank of Pakistan, State Bank of India, and Woori Bank also failed to attract any inflow.
A new milestone in March
March’s $3.29 billion remittance inflow—the highest monthly total since Bangladesh’s independence—translated to Tk 40,138 crore (at an exchange rate of Tk 122 per dollar). That’s a massive leap from the $1.71 billion received in March 2023, indicating a year-on-year increase of $1.58 billion.
A strong fiscal year
From July to March of the current 2024–25 fiscal year, total remittances stood at $21.78 billion, compared to $17.08 billion during the same period last year – an increase of over $4.7 billion.
What’s even more impressive is that monthly remittance figures have crossed the $2 billion mark for eight consecutive months since August:
July: $1.91 billion
August: $2.22 billion
September: $2.40 billion
October: $2.39 billion
November: $2.20 billion
December: $2.64 billion
January: $2.19 billion
February: $2.53 billion
March: $3.29 billion
What's driving the growth?
Experts cite a combination of regulatory tightening, improved banking services, and favourable exchange rates as key drivers. Government incentives for remitting through legal channels, along with technological upgrades in digital transfer platforms, have also helped streamline the process for millions of Bangladeshi workers abroad.
As the fiscal year progresses, policymakers and economists alike will be closely watching April’s final figures. If the current trend continues, Bangladesh could see yet another historic high in remittance earnings—providing much-needed stability to the economy ahead of national elections.