Written by The Banking Post
Bangladesh recorded a robust 30 percent year-on-year increase in remittance inflows in July, the first month of the current fiscal year, with expatriates sending home $2.47 billion, according to data from Bangladesh Bank.
In comparison, remittances stood at $1.91 billion in July last year.
Despite the annual growth, July’s figure marks a 12.22 percent decline from the previous month, when inflows peaked at $2.82 billion ahead of Eid-ul-Azha, a period that typically sees higher remittance volumes due to increased household spending.
Industry stakeholders attribute the recent surge in remittance to several contributing factors, including a reduced disparity between official and informal exchange rates, strengthened regulatory actions against money laundering, and a renewed sense of national solidarity among overseas Bangladeshis following the political transition in August 2024.
A senior official at Bangladesh Bank noted that the informal hundi system—often used for cross-border money transfers—has weakened considerably, likely due to increased oversight and shifting political dynamics. As a result, more remittances are now being routed through official banking channels.
The uptrend offers a positive signal for the country’s external sector, particularly as the government seeks to bolster foreign currency reserves and stabilize the financial system in the new fiscal year.
