Written by The Banking Post
Bangladesh recorded its highest-ever monthly remittance inflow in March, as expatriates sent home a surge of funds ahead of Eid-ul-Fitr, providing strong support to the country’s external account.
According to central bank data, remittance receipts reached $3.75 billion during the month—the highest since at least July 2019—marking a 14 per cent year-on-year increase from $3.29 billion in March last year.
The sharp rise also pushed total remittance inflows for the first nine months of FY2025–26 to $26.21 billion, up 20 per cent from the same period a year earlier. The March figure significantly exceeded February’s $3.02 billion, underscoring the seasonal boost driven by religious festivities.
Economists say the inflow has helped ease pressure on the external sector amid broader macroeconomic challenges. “Remittance remains the most critical buffer for our external account at a time of macroeconomic stress,” said an economist.
The surge, however, may prove temporary.
Growing geopolitical tensions in the Middle East—particularly involving the US, Israel and Iran—are raising concerns about future remittance flows. The situation around the Strait of Hormuz, a key global shipping route for oil and fertiliser, has heightened uncertainty, with potential spillovers already reflected in rising import costs.
Experts warn that prolonged instability in the Gulf could disrupt labour markets in key destination countries and slow migration, posing risks to remittance growth in the coming months.
“If instability persists, it could affect labour demand and migration flows, potentially slowing remittance growth,” the economist cautioned.
While the Eid season has delivered a strong inflow boost, policymakers are now closely watching external developments that could determine whether the momentum can be sustained through the final quarter of the fiscal year.
