Bangladesh recorded a historic $17.17 billion in inward remittances during the first six months and seven days of fiscal year 2025–26, underscoring the resilience of overseas earnings and providing crucial support to the country’s foreign exchange reserves amid global trade headwinds.
The inflow marks a strong year-on-year increase from the same period of FY2024–25, when remittances totalled about $14.31 billion.
The latest figure represents an additional $2.86 billion, or nearly 19.9 percent growth, building on momentum from FY25, a record year in which annual remittances crossed the $30 billion threshold for the first time.
Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan attributed the sustained growth to a combination of structural and policy-driven factors.
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He cited restored confidence in formal remittance channels following the political transitions in late 2024, which prompted a shift away from the illegal “hundi” system.
Improved transparency and a growing sense of economic patriotism among expatriates have encouraged greater use of banking channels, he said.
The stabilisation of the taka against the US dollar has also played a critical role, reducing speculative behaviour. With a market-based exchange rate now in place, remitters are no longer delaying transfers in anticipation of sudden currency depreciation.
Government incentives remain another key driver, with the continued 2.5 percent cash incentive encouraging low-income migrant workers to send money through official platforms.
Besides, expanded digital remittance services, including mobile financial services and fintech solutions, have made transfers faster and more accessible, particularly for workers in the Middle East and Southeast Asia.
Bangladesh received $2.47 billion in remittances in July, $2.42 billion in August, $2.68 billion in September, $2.56 billion in October, $2.88 billion in November, and $3.22 billion in December.
The data show an average monthly inflow of more than $2.42 billion over the past six months.
This strong remittance performance is influencing policymakers to reconsider borrowing from the International Monetary Fund under stringent conditions.
Professor Mustafizur Rahman, Distinguished Fellow of the Centre for Policy Dialogue (CPD), told UNB that the remittance surge is offsetting recent weakness in the export sector, which showed a slight contraction in December 2025.
According to the Asian Development Bank (ADB) and local economists, robust remittance inflows are expected to be a key driver of consumption and GDP growth in 2026.
As of early January 2026, Bangladesh’s gross foreign exchange reserves have benefited significantly from the inflows, standing at around $33 billion under traditional calculation, providing the government with added fiscal space to manage external debt obligations and import costs, he said.
Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank Limited (MTB), said confidence in the banking system has been restored, prompting expatriates to remit funds through formal channels.
He noted that exchange rate stability and a normalised curb market have reduced the appeal of hundi transactions, which deprive remitters of the 2.5 percent incentive or more.
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“In such a situation, sending remittance through illegal hundi is a loss for remitters,” he said.
Mahbubur Rahman added that Bangladesh Bank’s policy measures have further encouraged migrant workers and non-resident Bangladeshis to send their hard-earned money through legal channels.