Remittance inflows into Bangladesh have increased at an unprecedented rate since the Awami League dictatorship fell on August 5, 2024. This has been a major influence in changing the financial landscape and propelling the country’s economic recovery.
The inflow of remittances reached a record-breaking amount in the fiscal year 2024-25 (FY25), garnering over US$30 billion, according to figures from the Bangladesh Bank (BB). This was a notable increase from the previous record of $24.77 billion set in FY 2020-21.
The pace is also being maintained in FY 2025–2026, as seen by the $4.9 billion in remittances recorded in the first two months of July and August, which is 18.4% more than during the same period in the previous fiscal year, FY25.
In the face of persistent global uncertainty, this influx provides a crucial “glimmer of hope” for Bangladesh’s economic resiliency.
With over 12 million Bangladeshis residing overseas, there is still a considerable chance that these inflows will continue to increase.
Experts and economists noted that the astounding increase in remittances has become a key factor in stabilizing Bangladesh’s economy. In addition to strengthening foreign exchange reserves, these funds have helped stabilize the Bangladeshi taka’s exchange rate, which has reduced pressure on the country’s currency.
Additionally, despite ongoing issues like inflation, economic downturns, and mounting debt, remittances are helping the nation’s balance of payments and guaranteeing a robust and steady stream of foreign currency.
According to Bangladesh Bank Executive Director and Spokesperson Arif Hussain Khan, the government is offering a 2.5 percent cash incentive for remittances received through official channels in order to promote the use of legal pathways and optimize the benefits to the country.
He noted that remitters are now encouraged to use official banking channels rather than the illicit “hundi” method, which can increase the nation’s foreign exchange reserves.
According to the central bank’s conventional assessment, Bangladesh’s gross foreign exchange reserves increased to $31.28 billion by September 24, 2025, riding the rising remittance inflow.
In addition to neutralizing hundi, bankers stated that the current stable currency rate was a major factor in enticing remitters to send their money home through legal channels because the difference in exchange rates between banks and the street market is too tiny.
Market participants claim that the banking system gives remitters a maximum conversion rate of Taka 121.75 per dollar, whilst the kerb market offers a maximum exchange rate of Taka 122.50 per dollar.
The requests for hundi and hawala, illicit cross-border money transfer routes, have decreased as a result of a crackdown on operators following the political transition, according to Mohammed Shahid Ullah, Deputy Managing Director (DMD) of the Dutch-Bangla Bank Limited.
“This has diverted more remittances through formal banking channels,” he stated.
He added that stronger dollar inflows brought on by more remittances had caused the FX market to stabilize in recent months.
However, he claimed that the benefits of the remittance boom are widely apparent throughout Bangladesh, especially in rural areas where a large number of families rely on money supplied by family members who are employed abroad.
Even though a sizable amount of these monies go toward everyday costs, he said that a growing percentage are going toward important long-term investments like healthcare, education, and small enterprises, which open up prospects for upward mobility.
