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Remittance inflows to Bangladesh rose 12.1 per cent year-on-year to $2.87 billion in October, maintaining strong growth despite escalating tensions and security concerns in West Asia.

The latest inflow was nearly 4 per cent higher than the $2.77 billion received in September and significantly above the $2.56 billion recorded in October last year, according to Bangladesh Bank data released on Sunday.

Saudi Arabia, home to more than 3.5 million Bangladeshi expatriates, remains the country’s largest source of remittances, accounting for around 20 per cent of total inflows.

However, the ongoing conflict, which began in February, has raised concerns over the safety and livelihoods of Bangladeshi workers in the kingdom. Houthi rebel attacks targeting Riyadh have heightened security fears, leaving two Bangladeshis dead and several others injured. Security risks and flight suspensions have also disrupted workers’ lives.

Economists warn that a prolonged crisis could affect overseas employment opportunities and remittance flows, potentially putting additional pressure on the country’s external sector.

Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan said remittance growth remained strong despite fears of a decline following several attacks in Saudi Arabia during October.

Former World Bank Dhaka office lead economist Zahid Hussain described remittances as one of the strongest indicators of the country’s economy. He warned that any setback could put pressure on foreign exchange reserves and worsen existing economic challenges.

Bangladesh received $2.86 billion in remittances in July and $2.97 billion in August. With October’s inflow, total remittances during the first four months of FY27 reached $11.47 billion, representing a 13 per cent increase from $10.15 billion in the same period a year earlier.

The growth follows a record performance in FY26, when expatriate Bangladeshis sent home $35.59 billion, up 17.34 per cent year-on-year, averaging nearly $2.97 billion a month.

Meanwhile, the country’s foreign exchange reserves stood at $31.46 billion under the International Monetary Fund’s BPM6 accounting framework on October 29. Gross reserves were higher at $36.33 billion, according to Bangladesh Bank.

The central bank considers BPM6 reserves to be the more relevant measure of immediately usable foreign currency assets. Based on the August import bill of $5.76 billion, the reserves could cover approximately five and a half months of imports, comfortably exceeding the internationally recognised three-month benchmark.

Despite the strong remittance performance, economists caution that prolonged instability in West Asia could threaten one of Bangladesh’s most important sources of foreign exchange.