Written by The Banking Post
Bangladesh saw a robust start to remittance inflows in July, with $427 million received between July 1 and 6, according to the central bank’s latest update published on Monday, July 7.
Breakdown of Inflows
- Total (July 1–6): $427 million
- Just July 3–6: $222 million
Compared to the same period last year, when remittances totalled $371 million, this year’s figures represent a 15.34% year-on-year growth.
Factors Behind the Surge
Analysts credit several developments for the positive momentum:
- Stricter enforcement against informal transfer channels (hundi)
- Incentives for remitting through formal banking channels
- Stability in overseas employment, especially in the Middle East
A Bangladesh Bank official confirmed that expatriates are increasingly preferring legal channels to send money home. The post-Eid season typically sees a rise in transfers, and the trend is expected to positively impact the country’s foreign exchange reserves.
Economic Significance
Remittance is one of Bangladesh’s key sources of foreign income. Economists say that if the current pace continues through July, it will boost the country’s chances of achieving its full-year remittance target and reinforce macroeconomic stability.
