Expatriate Remittances Reach $774M in First 12 days of May

In the first eight days of October, Bangladesh received $790 million in remittances, up 75.17% from $450 million during the same period last year. September also saw an 80% increase in remittances, contributing to a rise in foreign exchange reserves to nearly $19.83 billion, up from $19.38 billion a month earlier.

Bangladesh received $4.63 billion in remittances during August and September, marking a 58% increase compared to the previous year. This surge comes as the country faces a foreign currency crisis, crucial for paying essential import bills. Experts attribute the growth to two main factors: a reduction in under-invoicing of import bills and a slowdown in money laundering through informal channels like hundi. Following recent political changes, demand for hundi dollars has dropped, redirecting funds through official channels.

Following the political shift, remittances have increased significantly in Bangladesh, with a 16.27% rise in exports despite labor unrest in the garment sector. The flow of remittances surged to $425 million in the first five days of October, up from $325 million during the same period last year. In September alone, remittances exceeded $2.4 billion, representing an 80.22% increase from the previous year. The total remittance growth for the first quarter of the fiscal year reached 33.33%.

In September, remittance inflows into Bangladesh surged by $1.07 billion, representing an 80.22% year-on-year increase. The country received $2.40 billion, up from $1.33 billion in the same month last year, and $180 million more than in August, marking the highest inflow in three months. This rise is largely due to expatriates shifting from informal channels like hundi to formal banking systems after the interim government was formed in August.

Expatriate Bangladeshis sent around $2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, with state-owned and specialised banks handling $679.10 million and private banks receiving $1.43 billion, according to Bangladesh Bank data.

Bangladesh has received $1.63 billion in remittances during the first 21 days of September, with state-owned and specialised banks handling $550 million and private banks $1.08 billion, according to the Bangladesh Bank. The average daily inflow is $77.8 million, positioning the total remittance for September to potentially surpass $2.33 billion.