In a significant boost to the national economy, remittance inflows to Bangladesh have witnessed a dramatic spike in the lead-up to the national elections. According to the latest figures released by the Bangladesh Bank, expatriate income recorded during the first 28 days of January 2026 has soared to $2.94 billion. This represents a staggering 50.6% increase compared to the same period in the previous year, when inflows stood at $1.95 billion.
Election Spending Drives Financial Influx
Financial analysts and senior banking officials suggest that while remittances typically peak during religious festivals such as Eid, the current surge is intrinsically linked to the upcoming polls. Industry insiders note that substantial funds are being funnelled into the country to cover the escalating costs of electioneering. In many instances, international fundraising efforts for various candidates are being channelled back to Bangladesh under the guise of formal remittances. This trend is expected to persist until the conclusion of the electoral process.
Fiscal Year Performance and Reserve Stability
The current fiscal year (FY 2025-26) has shown remarkable resilience. From July 2025 to late January 2026, the country received $19.21 billion in total remittances, marking a 22% rise over the $15.73 billion recorded during the equivalent period in the previous fiscal year.
The robust flow of foreign currency has played a pivotal role in stabilising the foreign exchange reserves. After hitting a peak of $48 billion in 2021, reserves faced a sharp decline, bottoming out at approximately $25.58 billion during the political transition in August 2024. However, the tide has turned; reserves have now climbed back to $32.26 billion.
| Period | Remittance Inflow (USD) | Status/Context |
| January 2026 (First 28 days) | $2.94 Billion | Pre-election surge |
| December 2025 | $3.22 Billion | Peak monthly inflow |
| November 2025 | $2.89 Billion | Steady growth |
| July 2025 | $2.48 Billion | Fiscal year start |
| Full Year 2025 | $32.82 Billion | Annual total |
Currency Market Impact
The influx of dollars has successfully mitigated the acute greenback crisis that plagued the banking sector last year. During the height of the scarcity, the US Dollar reached a record high of 128 BDT. With the central bank actively purchasing dollars from commercial banks to bolster reserves, the market has stabilised. Currently, the exchange rate is hovering comfortably between 122 and 123 BDT, providing much-needed relief to importers and easing inflationary pressures.
The central bank remains optimistic that if this momentum continues, the national economy will enter the post-election period on a significantly stronger financial footing.