Remittance inflow hits $3.17bn in Jan, third-highest on record
Staff Reporter :
Bangladesh received a significant boost to its economy in January 2026 as expatriate Bangladeshis sent home $3.17 billion in remittances, marking the third-highest monthly inflow on record.
The amount represents a sharp year-on-year increase of about 45.4 percent compared to January 2025, when remittances stood at $2.18 billion, according to Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan.
Central bank data show that the highest remittance inflow was recorded in March 2025 at $3.29 billion, followed by $3.22 billion in December of the same year.
The strong performance in January has sent a positive signal for the country’s foreign exchange market, reserve management and overall macroeconomic stability, officials and economists said.
Remittance inflows gained notable momentum towards the end of the month. Between January 29 and 31 alone, expatriates sent $229 million, averaging around $76 million per day.
Bankers believe this surge reflects growing confidence among migrant workers in formal banking channels, amid tighter monitoring of informal transfer systems and improved services offered by banks.
The upward trend is not limited to a single month. During the first seven months of the current 2025–26 fiscal year (July to January 31), total remittance inflows reached $19.44 billion.
In comparison, remittances during the same period of the previous fiscal year stood at $15.96 billion.
This indicates a robust growth of about 21.8 percent year-on-year, which economists describe as one of the most encouraging trends in recent years.
Analysts attribute the sustained rise in remittances to several factors. These include a more realistic and competitive dollar exchange rate offered through banking channels, rising risks and costs associated with hundi, and the continuation of government cash incentives for remittance senders.
In addition, labour demand remains relatively stable in parts of the Middle East and Europe, while many expatriates prefer formal channels amid economic uncertainty and the upcoming national elections.
Economists say the strong remittance inflow is easing pressure on the country’s foreign exchange reserves and helping banks meet their import payment obligations.
It is also contributing to reduced volatility in the exchange rate, supporting efforts to control inflation and manage the current account deficit.
If the current momentum continues in the coming months, Bangladesh could set a new remittance record in the 2025–26 fiscal year, economists noted.
However, they also stressed the importance of expanding overseas labour markets, increasing the deployment of skilled workers, and further strengthening trust and efficiency in the banking system to sustain long-term growth in remittance inflows.