Bangladesh’s economy continues to receive a significant boost from its expatriate workforce, with remittances reaching approximately US$1.99 billion in the first 21 days of June. This strong inflow underscores a remarkable growth trajectory for the current fiscal year.
According to the latest data released by Bangladesh Bank (BB) today, total remittances during the July 2024 to June 21, 2025 period of the current fiscal year (FY25) have surged to an impressive $29.50 billion. This marks a substantial increase of $6.21 billion, or 26.7 percent, compared to the $23.29 billion received during the corresponding period of the previous fiscal year (FY24).
This robust performance in remittance inflows is a critical lifeline for Bangladesh, serving as one of the largest sources of foreign exchange and playing a vital role in maintaining economic stability and bolstering the country’s foreign exchange reserves. The current fiscal year’s figures are poised to set a new annual record, surpassing the previous high of $24.77 billion achieved in FY21.
The consistent surge in remittances is attributed to a confluence of factors. Analysts and banking officials point to a narrowing gap between official and informal exchange rates, which has incentivized expatriates to channel their earnings through formal banking channels rather than the ‘hundi’ system. Additionally, increased confidence in Bangladesh’s banking system, coupled with sustained overseas employment, has contributed to this upward trend.
Notably, May 2025 saw a substantial inflow of $2.97 billion, marking the second-highest monthly remittance in Bangladesh’s history. This followed a record-breaking $3.29 billion in March 2025, largely driven by Eid-ul-Fitr celebrations, which historically see a rise in remittance transfers. The trend of high remittances continued into June, likely influenced by the upcoming Eid-ul-Azha festival.
Among the financial institutions, Islami Bank Bangladesh Limited has dominated the remittance collection, followed by Bangladesh Krishi Bank and various private commercial banks, highlighting their extensive networks and services catering to the Bangladeshi diaspora.
The continued robust remittance inflows are providing much-needed relief to Bangladesh’s economy, helping to ease pressure on the country’s foreign currency reserves and supporting the import sector. This positive trend is a testament to the dedication of Bangladeshi expatriates and the evolving landscape of remittance channels, which are increasingly favoring formal pathways.
