DHAKA, Aug 05, 2025 (BSS) - Since the fall of the Awami League regime on August 5, 2024, Bangladesh has witnessed several records in remittance inflow as the current interim government has been able to restore trust and confidence among expatriates on the country’s banking system.

Over the last one year, Bangladesh received the highest remittance for a single month and also reached a historic milestone in the fiscal year 2024-25 (FY25) with remittance inflows surpassing $30 billion, breaking all the previous records.

According to the Bangladesh Bank (BB) data, expatriate Bangladeshis sent a record $30.33 billion in remittances in FY25, marking the highest amount ever received in a single fiscal year in the country's history.

This figure reflects a 26.80 percent increase compared to the $23.91 billion received in the previous fiscal year (FY24).

This surpasses the earlier record of $24.77 billion sent in FY2020-21.

Meanwhile, Bangladesh received a record $3.29 billion as remittances in March, making it the highest remittance inflow for a single month in the country's history, surpassing the previous record of $2.64 billion in December last year.
Like the last fiscal, the positive trend on remittance inflow continues as expatriate Bangladeshis sent around $2.48 billion remittances during the month of July in the fiscal 2025-26 which was around 30 percent higher than the same period of the last fiscal 2024-25.

Economists and experts observed that the government’s immediate steps and campaign after the changeover in state power on August 5 last year have been encouraging the expatriates to send their hard-earned money home through formal channel instead of unofficial ones.

“In fact, this is helping the inflow of remittance rise at a large scale, which is being reflected in the recent data,” said an official of the central bank.

Taking to BSS, Planning Adviser Dr Wahiduddin Mahmud said that there is increase in remittance inflow since improvement in the balance of payments is visible side by side the Taka-Dollar exchange rate has also remained in a stable state.

He said the decision to make the exchange rate as market-based did not cause any difficulty rather the exchange rate did not became volatile at all brushing aside the concerns from many.
“We made the exchange rate as market-based of our own considerations although it was the prescription of others (IMF)…the confidence on Taka has been increasing,” he added.

Dr Mahmud opined that the inward remittance through legal channel has been increasing since there is no speculation now of abruptly increasing the dollar price for which the expatriates have no such tendency of holding up the remittance.

He said although the investment flow is not increasing up to the expected level, but the inward remittance especially in the expatriates-prone areas has been acting as catalyst for the economy.

“It’s compensating the stagnancy in investment to a big extent. For this, the rural economy has not become stagnant as it was expected. Now the economy is gradually reviving and inward remittance is a big reason for this. Besides, the exports are also increasing,” he added.

Talking to BSS, General Economics Division (GED) Member of the Planning Commission Dr Monzur Hossain said that the inward remittance flow alongside export earnings and the exchange rate are in good shape as the export earnings have increased over the months side by side the inward remittance flow has also increased.

Apart from this, he said that the exchange rate has been stabilized while the foreign currency reserves have also increased which indicates that the external sector is in a comparatively good condition.

Bangladesh Bank Executive Director and Spokesperson Arif Hussain Khan said remitters now feel encouraged to send their money through formal banking channels instead of the illegal “hundi” system, which can help boost the country's foreign exchange reserves.

Riding on the growing inflow of remittances, Bangladesh's gross foreign exchange reserves rose to $30 billion by July 24, 2025, as per the traditional calculation of the central bank.

However, as per the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh's net reserves currently stand at $24.99 billion.

Apart from neutralising hundi, bankers said the prevailing stable exchange rate played a key role in alluring remitters to choose formal options to send their money back home as the rate differential between banks and the kerb market is too small.

According to market players, remitters are getting a maximum exchange rate of Taka 122.89 a dollar from the banking system, while it is Taka 125 a dollar in the kerb market.

Deputy Managing Director (DMD) of the Premier Bank PLC Abdul Quaium Chowdhury said the demands for hundi and hawala -- illegal cross-border money transfer channels -- have declined following a crackdown on operators after the political changeover.

“This has diverted more remittances through formal banking channels,” he added.
He also mentioned that the forex market has stabilised in recent months due to higher dollar inflows driven by increased remittances.

In August, 2024, remittances surged 39 percent year-on-year to $2.22 billion while 80.28 percent in September to $2.4 billion.

This momentum continued, with inflows of $2.39 billion in October, $2.19 billion in November, $2.63 billion in December, $2.18 billion in January, $2.52 billion in February, $3.29 billion in March, $2.75 billion in April, $2.97 billion in May and $2.82 billion in June.