Bangladesh receives record $3.29b in remittances in March

Bangladesh achieved a historic milestone in March, receiving a record $3.29 billion in remittances, marking a staggering 65 per cent year-on-year increase, according to data from the central bank. 

This surge was largely fuelled by the Eid-ul-Fitr festival, which traditionally prompts higher inflows as expatriates send money home for celebrations.  

March inflows surpass previous records 

In just the first 26 days of March, remittances totalled $2.94 billion, already surpassing previous monthly records. The final push came in the last five days of the month, with an additional $345 million flowing into the country between March 27 and 31.  

The strong performance in March capped off an impressive nine-month period (July-March) of the current fiscal year, during which total remittances reached $21.77 billion, up from $16.69 billion in the same period last year.  

Consistent growth since September 

The upward trend in remittance inflows began in September, when Bangladesh received $2.4 billion, representing an 80.28 per cent year-on-year increase. This momentum continued in subsequent months:  $2.39 billion in October, $2.19 billion in November, $2.63 billion in December, $2.18 billion in January and $2.52 billion in February.

This consistent growth has provided much-needed relief to Bangladesh’s foreign exchange reserves, easing pressure on the country’s currency market. 

Improved liquidity has also been reflected in banks' net open positions, signalling enhanced stability in the financial system.  

Impact on the economy 

The sustained increase in remittances has played a crucial role in stabilising Bangladesh’s economy amid global uncertainties. By boosting foreign exchange reserves, these inflows have helped mitigate pressures on the taka and supported import payments. 

Additionally, the influx of funds has stimulated domestic consumption, benefiting local businesses and contributing to overall economic growth.