Remittance inflow to Bangladesh increased slightly in January, with the inflow remaining above $2 billion for the last six consecutive months.
According to Bangladesh Bank data, remittance inflow was $2.18 billion in January against the inflow of $2.11 billion in the same month in 2024.
Remittance inflow reached a record high of $13.77 billion in the first half of the 2024-25 financial year, with December alone contributing record $2.63 billion, according to BB data.
From July 2024 to January 2025, remittance inflow hit $15.96 billion while it was $12.91 billion in the same period in the previous financial year.
During the period, remittance inflow stayed above $2 billion for the sixth consecutive month till January.
Bankers attributed the surge in remittance inflow to the rise in the dollar exchange rate and a reduction in money laundering through illegal channels such as hundi.
Experts attributed this surge to an increased use of official channels, especially state-owned banks, by expatriates in sending money to the country after a major political shift in Bangladesh on August 5, 2024.
Bankers noted that many remitters had shifted away from private banks due to concerns over liquidity challenges and irregularities that plagued several private institutions during the ousted Awami League regime.
This has driven remitters to seek safer options, bolstering state-run banks鈥� share in remittance handling, they said.
The new government鈥檚 efforts to stabilise the financial sector have fostered expatriates鈥� trust in state-run institutions, they said.
The high remittance inflows have helped the central bank repay significant foreign overdue payments by the end of December.
Despite these repayments, the country鈥檚 foreign currency reserve, according to the International Monetary Fund guidelines, increased to $19.97 billion on January 30.
Some banks purchased dollars at the rate of Tk 124 in January, although the rate was Tk 122 each.
In addition to the rate, the remitters enjoyed government鈥檚 incentive.
The rate was Tk 120 each on December 10, which suddenly surged to the peak due to immense pressure on repaying foreign loans. The BB also found some malpractices and price manipulation exercised by a number of banks.
In order to stabilise the dollar rate and prevent malfunction, the BB introduced managed floating rate system for determining actual dollar rate.
The dollar rate was Tk 110 in December 2023, Tk 99 in December 2022 and Tk 84.8 in July 2021.
The high dollar rates attracted expatriates to use formal channels for money transfers, avoiding illegal channels like hundi, bankers said.
The remittance inflow reached $23.9 billion in FY24, up from $21.6 billion in FY23.
