Remittances surge by 35.7pc
Bangladesh’s remittance inflows have recorded a sharp rise in the first half of March, driven largely by higher transfers from expatriate workers ahead of Eid-ul-Fitr, according to the latest data from Bangladesh Bank.
Expatriates sent home $2.20 billion in the first 14 days of March, marking a 35.7 per cent increase compared with $1.62 billion received during the same period in 2025, Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan confirmed on Saturday.
Between 12 and 14 March alone, remittances reached $284 million, reflecting a seasonal surge as migrant workers typically send more money home before major festivals.
Cumulative remittance inflows from July 2025 to 14 March 2026 stood at $24.65 billion, representing a 22.6 per cent increase from $20.11 billion recorded during the corresponding period of the previous fiscal year.
The rise follows several recent monthly highs, including $3.29 billion in March 2025, largely driven by Eid-related transfers, and $3.17 billion in January 2026.
Bangladesh’s gross foreign exchange reserves stood at $34.54 billion as of February, while net reserves, calculated under the IMF’s BPM-6 methodology, were estimated at $29.86 billion.
Economists attribute the sustained growth in remittances to a stabilised exchange rate and a crackdown on illegal hundi channels following the country’s political transition in August 2024.
A senior official at a private bank said the upcoming Eid festival has been a major driver of the current increase, noting that remittance flows usually rise before the holiday but tend to slow afterwards.
The banker also warned that the ongoing Iran-Israel conflict could affect remittance inflows from the Middle East in the coming months. If migrant workers in the region face employment disruptions due to the conflict, transfers through formal banking channels could decline, he said.
Another private bank official said expatriates were receiving between Tk121.70 and Tk121.75 per US dollar on Saturday, while LC settlements were being made at Tk121.20 per dollar.
The Middle East conflict escalated on 28 February, when Israel and the United States launched joint attacks on Iran. Iran has since responded with missile strikes targeting Israel and countries in the Arab region hosting US military bases.
Tehran has also imposed restrictions on vessel movements through the Strait of Hormuz, contributing to a rise in global fuel prices.
Meanwhile, economists recently met the newly appointed Bangladesh Bank governor, during which the central bank signalled efforts to maintain foreign exchange reserves.
According to banking sector sources, the signal has encouraged banks to purchase remittance dollars at higher rates.
A senior banker said that if new investment increases in the coming months, demand for opening letters of credit (LCs) will also rise, pushing up demand for US dollars in the banking sector. As a result, banks are currently buying remittance dollars at relatively higher rates.
