Written by The Banking Post
Remittance inflows to Bangladesh surged 12 percent year-on-year in September, helping ease pressure on the foreign exchange market and stabilise the taka.
According to Bangladesh Bank data, expatriates sent $2.68 billion last month, up from $2.40 billion in the same month a year ago. The sharp rise is being linked to a narrowing gap between official and informal exchange rates, a crackdown on money laundering, and the government’s push to promote official remittance channels.
In the July–September quarter of FY26, Bangladesh received $7.58 billion in remittances—an 8 percent increase from $6.54 billion during the same period last year.
Bankers said a more stable exchange rate and the government’s 2.5 percent cash incentive are encouraging expatriates to use banking channels instead of informal “hundi” routes. “Since irregular payment methods are now being strictly controlled, dollar demand through unofficial channels has dropped significantly,” said Mati Ul Hasan, managing director and CEO of Mercantile Bank PLC.
He added that the central bank is keeping a close watch on large import transactions, requiring banks to verify the source of funds and ensure exchange rate transparency.
Bangladesh’s forex reserves have also rebounded on the back of higher remittances, reaching $26.62 billion, up from $21 billion a year ago, according to the IMF’s calculation method.
The country received a record $30.3 billion in remittances in FY25—a 26.8 percent jump from the previous year—driven by a market-based exchange rate and tighter oversight of informal money transfers.
Bangladesh saw its highest-ever monthly remittance in March 2025, when expatriates sent $3.29 billion.
Over the last four years, more than 4 million Bangladeshis have gone abroad for jobs, further strengthening the inflow pipeline.
Despite the strong recovery, experts say Bangladesh still trails behind regional peers like India and Pakistan in per-worker remittance earnings, indicating room for further growth.
