Foreign inflows push reserves to $34b
Bangladesh has recorded a historic surge in remittance inflows, receiving US $3.62 billion in the first 30 days of March 2026, according to central bank data.
The increase, driven by expatriates sending money ahead of the Eid-ul-Fitr celebrations, has boosted the country’s foreign exchange reserves to a robust $34.05 billion.
The March figure represents a 10.7 percent rise compared with $3.27 billion in the same period last year, marking a record-breaking performance for the month.
Analysts say this trend underlines the growing importance of remittances in supporting the national economy and maintaining macroeconomic stability.
Cumulative remittance for the current fiscal year, from July 2025 to March 28, 2026, reached $26.07 billion, up 19.8 percent from $21.76 billion recorded during the corresponding period of FY 2024-25.
Central bank officials attribute the record inflows to the government’s 2.5 percent cash incentive on formal banking channels, which has helped reduce informal transfers through the traditional “hundi” system.
The surge was particularly pronounced in the first half of March, with expatriates sending $2.20 billion in just the first 14 days—a 35.7 percent increase compared with the same period in 2025.
Economists note that seasonal factors, such as Ramadan and Eid preparations, typically drive higher transfers as Non-resident Bangladeshis (NRBs) support family and festival expenses.
The inflows have strengthened Bangladesh’s foreign exchange position. Gross reserves rose to $34.05 billion as of March 30, 2026, compared with $29.35 billion under the IMF’s BPM6 manual.
Mid-month figures had shown reserves peaking at $34.22 billion on March 16 before a slight adjustment.
Economists and industry insiders suggest that if the current momentum continues, total remittances for FY 2025-26 could surpass all previous annual records.
Such a milestone would provide further support for the Taka, stabilise the exchange rate, and ease pressure on the country’s balance of payments amid ongoing global economic volatility.
The sustained growth in remittance inflows also highlights the role of overseas workers in sustaining domestic consumption and investment.
Analysts say that increased formalisation of transfers and timely government incentives have contributed to this robust performance, while the banking sector has ensured smooth handling of the inflows.
Overall, the record remittance performance in March and the cumulative fiscal year figures reinforce the sector’s critical contribution to Bangladesh’s economy, providing a reliable source of foreign currency, supporting household incomes, and strengthening the country’s external financial position.
Economists emphasise that continued government support, stable policies, and encouragement of formal banking channels will be crucial to maintain this trend in the coming months.
