Remittance inflows from the US Crossed $3 Billion

Continuing the positive trend in remittance inflows observed since FY 2023-24, Bangladesh experienced a significant surge in remittances, totaling $608.11 million in the second week of July and contributing to a total of $978.65 million for the first half of the month, according to Bangladesh Bank data.

The cost of sending remittances to Bangladesh is rising, despite efforts to reduce it. While the cost of remitting through banking channels has slightly decreased over the past year, the expenses for mobile banking and postal services have increased. Compared to 2019, the cost of sending remittances through all channels has gone up as of September 2023.

In FY24, Chattogram emerged as Bangladesh's leading district in remittance growth, recording a 47% increase to $2.37 billion. This surge highlights its pivotal role in national remittance flows, which grew by 10.66% to approximately $24 billion across all districts. Dhaka saw a 19% rise in remittances, while the UAE topped as the largest sender, with a 52% increase to $4.6 billion.

In FY23-24, Bangladesh's remittances surged to nearly $24 billion, marking a 10.66% increase from the previous year's total of $21 billion. This rise was bolstered by efforts to stabilize exchange rates and curb informal channels. The introduction of a flexible exchange rate system in May contributed to narrowing the gap between formal and informal rates, encouraging more remittances through official channels. Banks' incentives and policy initiatives further supported the inflow, amidst ongoing challenges in the foreign exchange market.

In the first 10 months of the outgoing fiscal year, Bangladesh received its highest remittance inflows from the United Arab Emirates (UAE), surpassing traditional sources like Saudi Arabia and the United States, according to Bangladesh Bank data.

In June 2024, Bangladesh received a record-breaking $2 billion in remittances within the first 23 days, driven by increased transfers during Eid-ul-Azha. This marks the third consecutive month where remittances surpassed the $2 billion mark, following $2.25 billion in May and $2.04 billion in April, according to Bangladesh Bank data.