Bangladesh has received a record $2.94 billion in remittances during the first 26 days of March, a sharp increase driven by the upcoming Eid-ul-Fitr, one of the largest festivals for Muslims.
This inflow is 82.46% higher than the same period last year, with industry insiders highlighting the significant role of Eid in the surge.
Central bank data shows that expatriate Bangladeshis sent $1.61 billion during the same period in 2024, further illustrating the remarkable rise.
The total remittance receipts for the month are expected to exceed $3 billion, marking a historic high for a single month in the country.
From July to March 26 of the current fiscal year, Bangladesh has received $21.43 billion in remittances, up from $16.69 billion during the same period in the previous fiscal year, according to data from Bangladesh Bank.
Industry insiders have pointed out that remittance inflows tend to rise during Ramadan, as expatriates typically send more money to their families ahead of Eid.
Additionally, the crackdown on illegal money transfer channels such as hundi and hawala has further boosted the use of formal banking channels for remittance transfers.
Central bank officials also noted that remittances began to rise significantly following the political changeover in August last year.
In September, remittances surged by 80.28% year-on-year to $2.4 billion.
This momentum continued throughout the following months, with inflows of $2.39 billion in October, $2.19 billion in November, $2.63 billion in December, $2.18 billion in January, and $2.52 billion in February.
As a result of this growing trend in remittance inflows, liquidity in the forex market has improved, as seen in the banks' net open positions (NOP)—the difference between their foreign currency assets and liabilities.
Banks' NOPs reached $550 million as of March 20, up from around $150 million earlier in the month.
In previous months, the NOP had fluctuated between $250 million and $300 million, indicating a steady improvement in the foreign exchange market’s stability.
This increase in NOP is attributed to a rise in the inflow of US dollars, showing that Bangladesh’s foreign exchange market is steadily regaining stability.
