Economic Boost as Remittances Hit Three Billion Dollars

The final month of the year has seen a transformative surge in the fortunes of the Bangladeshi economy, with inward remittances from expatriates comfortably exceeding the $3 billion mark within the first twenty-nine days of December. This influx of foreign currency has acted as a critical lifeline, significantly easing the domestic dollar crisis and allowing the central bank to fortify the nation’s financial defences. As a result, gross foreign exchange reserves have now surpassed $33 billion, reaching a three-year peak that signals a period of renewed macroeconomic stability. This recovery is a stark contrast to the volatility seen during the political transition in August 2024, when reserves had dwindled to $26 billion.

The consistent upward trajectory of remittance income highlights a renewed sense of trust in formal financial channels. The $3.04 billion recorded this month is part of a broader trend of fiscal resilience; the nation saw its highest-ever monthly inflow in March with $3.29 billion. Over the course of the 2024–25 fiscal year to date, total remittances have amassed to $30.33 billion, representing a significant improvement over the $23.91 billion achieved during the previous fiscal cycle. This growth has allowed the authorities to move away from a defensive economic posture and toward one of active accumulation and market stabilisation.

National Financial Performance Data

To capitalise on the surplus liquidity, Bangladesh Bank has been aggressively purchasing dollars from commercial lenders. In a recent auction, the central bank acquired $89 million from seven banks at a fixed rate of 122.30 BDT per dollar, bringing the total amount of dollars purchased from the domestic market to $3.13 billion for the current fiscal year. Governor Ahsan H. Mansur has expressed optimism that the total reserves will climb toward $35 billion by the end of the calendar year. Crucially, the Governor has emphasised that this growth is being driven by organic market participation rather than a reliance on external debt or IMF tranches, a strategy designed to ensure that the nation’s financial sovereignty remains robust in the face of global economic pressures.