Remittance Surge Strengthens Foreign Exchange Position

In a notable boost to Bangladesh’s external sector, the country received remittance inflows amounting to US$315 million within the first three days of May. According to data released by Bangladesh Bank, this translates to an average daily inflow of approximately US$105 million, signalling sustained strength in expatriate earnings. The information was confirmed on Monday by the central bank spokesperson Arif Hossain Khan.

Remittance has long been a cornerstone of Bangladesh’s macroeconomic stability. It plays a critical role in maintaining foreign exchange reserves, financing import payments, narrowing the current account deficit, and easing pressure on the US dollar in the domestic market. At a time when global prices of fuel, food commodities, and industrial raw materials remain elevated, the steady inflow of remittances has provided essential relief to the economy.

A year-on-year comparison highlights the scale of growth. During the first three days of May last year, remittance inflows stood at just US$88 million. This means that the current figure represents an increase of approximately 258 per cent, or more than three and a half times higher than the same period last year.

For the ongoing 2025–26 fiscal year, Bangladesh received a total of US$29.648 billion in remittances between July and 3 May. This marks a 20.40 per cent increase compared with the same period of the previous fiscal year, underscoring a consistent upward trend in expatriate income inflows.

Economists attribute this sustained growth to several policy and structural factors. Government incentives, including cash bonuses on remittances sent through formal banking channels, have encouraged expatriates to avoid informal transfer systems. In addition, stricter monitoring of money laundering and illegal transfer channels, expansion of mobile financial services, and improved banking accessibility have collectively strengthened formal remittance flows.

Recent months further illustrate this momentum, with record-breaking inflows observed particularly in March and strong performance continuing into April. March alone set a historic record for monthly remittance receipts, while April maintained similarly robust levels.

Monthly Remittance Overview

Remittance remains Bangladesh’s second-largest source of foreign currency earnings after the ready-made garment sector. Millions of Bangladeshi workers across the Middle East, Europe, North America, Malaysia, and Southeast Asia continue to contribute significantly to the national economy through regular financial transfers.

Experts suggest that if this upward trajectory continues, it will further strengthen external account stability, ease import financing pressures, and support the overall balance of payments. Moreover, sustained remittance growth is expected to reinforce foreign exchange reserves and enhance macroeconomic confidence in the months ahead.