Remittances top $3b for fifth month

Remittance inflow rose 13.6 percent year-on-year to $3.13 billion in April, as expatriates sent more money home ahead of Eid-ul-Azha, the second of the two major Muslim festivals, expected to be observed later this month.

Every year, the country receives larger-than-usual money transfers from Bangladeshis living abroad ahead of the two Eids.

With the latest addition, expatriates have sent over $3 billion for five consecutive months, according to Bangladesh Bank data published yesterday.

Bankers attribute the trend to improved use of formal channels and stronger inflows from workers abroad.

Central bank officials said remittance inflows have been growing not only in recent months but also since the fall of the previous government in August 2024.

Previously, demand for hundi had been on the rise amid reports of large sums of money being siphoned abroad. That has stopped since the interim government took over. The inflow, however, fell short of March’s record $3.75 billion-- the highest single-month figure on record.

In the ongoing fiscal year 2025-26 (FY26), remittances have maintained robust growth, driving up the country’s foreign exchange reserves.

Between July and April, total inflows reached $29.33 billion, up from $24.54 billion during the same period last year, marking a 19.5 percent increase.

Economists say the rising inflow could help ease pressure on the external sector, support exchange rate stability, and strengthen overall macroeconomic conditions if the trend holds in the coming months.

The surge in remittance comes at a time of concern over the possible impact of the US-Israel war on Iran on remittances in the coming months.

Bankers said the spike was largely due to the Eid festival, political stability, and a higher US dollar rate following a slight depreciation of the taka.

The growing trend in remittance inflows is a combined effort of all stakeholders, including the central bank, commercial banks, and Bangladeshi expatriates, they added.

Due to the growing trend in remittance inflows, the central bank has purchased more than $5 billion from the foreign exchange market so far in the ongoing fiscal year to manage liquidity and build up reserves.

As of April 30, the country’s forex reserves stood at $30.47 billion (BPM6), up from $22.02 billion during the same period of the last fiscal year, according to the latest data from Bangladesh Bank.