Written by The Banking Post
Bangladesh received $2.42 billion in remittances in August 2025, marking an 8.9 percent year-on-year increase from $2.22 billion in the same month last year, according to Bangladesh Bank data.
In the first two months of FY26 (July–August), remittance inflows reached $4.9 billion, up 18.4 percent from $4.14 billion in the corresponding period of FY25. The rise provides relief for foreign exchange reserves, though experts caution the trend must be sustained through effective policy.
The country registered a record $30.32 billion in remittances in FY25 despite macroeconomic strains and a persistent dollar shortage.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank (MTB) PLC, said the uptick is a “positive sign” as it strengthens reserves. However, he warned that inflows had recently shown a declining trend. “Informal channels, particularly hundi, remain a bottleneck. Stronger incentives, compliance, and awareness campaigns are needed to encourage migrants to use formal banking channels,” he said.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, described the growth as “encouraging, particularly amid ongoing pressures on the balance of payments.” He credited migrant resilience and stricter banking governance for supporting inflows but cautioned that consistency in policy is vital.
“Sustaining momentum will require competitive exchange rates, streamlined banking services, and measures to curb informal channels. The priority should be making remittance channels more accessible, transparent, and cost-effective,” he added.
