Written by The Banking Post
Remittance inflows have surged sharply ahead of Eid-ul-Fitr, offering a strong boost to Bangladesh’s external sector despite rising geopolitical tensions in key migrant-destination regions.
The country received $2.44 billion in remittances during the first 15 days of the month, marking a 47.10 per cent increase from $1.66 billion in the same period last year, according to data from Bangladesh Bank.
Officials said the spike reflects seasonal transfers from expatriates supporting families before the Eid festival. So far, inflows have remained resilient despite escalating tensions in the Middle East.
“The current higher inflow of remittances reflects earlier plans by expatriates to support their families ahead of the Eid festival,” a senior central bank official said.
However, the regulator warned that the impact of ongoing geopolitical tensions—particularly involving the United States, Israel and Iran—could begin to affect remittance flows from next month if the situation persists.
In its latest quarterly report, the central bank cautioned that migration disruptions and economic uncertainty in host countries could slow remittance growth in the coming months.
“Despite high remittance inflows supported by a large stock of existing migrant workers, remittance growth could slow due to migration disruptions and economic uncertainty in host countries,” the report noted.
The extent of the impact will depend on how long the conflict lasts and how widely it spreads, it added.
“A brief conflict may have only limited effects, whereas a prolonged regional crisis could significantly reduce remittance inflows and intensify pressure on the external sector,” the report said.
For now, strong inflows are helping ease pressure on the country’s foreign exchange reserves, though uncertainties remain over the outlook.
