Remittance Dollar Reaches Record High of Tk127

Despite Bangladesh sending a record 5.26 lakh workers to Saudi Arabia in FY24, remittances from the Gulf nation have dropped to $2.74 billion, down from $5.72 billion in FY21. In contrast, the UAE, which hired fewer Bangladeshi workers, sent $4.64 billion in remittances in FY24.

Bangladesh received $2.18 billion in remittances in January 2025, marking the sixth consecutive month above $2 billion, a 3.4% year-on-year increase. However, growth slowed compared to December’s 33% surge due to Bangladesh Bank’s restrictions on high exchange rates.

Experts and stakeholders at a seminar proposed increasing the remittance incentive from 2.5% to 4% to encourage overseas workers to send money through legal channels. The seminar highlighted that last year, Bangladesh received $27 billion in remittances, with 25% of the workforce employed abroad.

In November, Bangladesh received $2,199.99 million in remittances, with $511.96 million coming from the US and $684.58 million sent to Dhaka. Chattogram and Sylhet divisions received $603.9 million and $199.6 million, respectively.

Bangladesh's foreign exchange reserves have dropped to $20 billion after a $1.67 billion payment to the Asian Clearing Union (ACU) for November-December imports. This figure, calculated using the IMF's BPM-6 method, is lower than the central bank's estimate of $24.9 billion. 

The Bangladesh Bank has raised the crawling-peg rate for the dollar from Tk 117 to Tk 119, with additional allowances for remittance purchases and bank profits capped at 2.5% and 1% respectively. Economists remain sceptical, arguing that stabilizing the dollar market requires a demand-driven exchange rate, enhanced monitoring of illegal dollar trading, and stricter controls on over-invoicing and smuggling.