Bangladesh has witnessed an extraordinary surge in remittance inflows, surpassing $2.07 billion in just the first 21 days of December.
This is the highest recorded inflow within such a short span since the interim government assumed office last August.
According to Bangladesh Bank, the inflow totalled $2,072.3 million during this period, surpassing the $2 billion mark for the fifth consecutive month since the new government took charge.
The robust remittance flow has significantly bolstered the central bank’s foreign exchange reserves, which stood at $24.98 billion as of Monday (23 December).
By the International Monetary Fund's BPM6 calculation, the reserves reached $20.16 billion, exceeding the $20 billion threshold for the first time in months.
Data from Bangladesh Bank reveals that the daily average remittance inflow during the first 21 days of December stood at $95.58 million.
This represents a substantial rise compared to November, when the daily average was $73.31 million, and December 2023, which saw an average of $66.37 million per day.
The remittance inflow for December was distributed across various banking channels: $613.1 million was routed through state-owned commercial banks, $77.35 million through specialised agricultural banks, $1,311.62 million through private banks, and $5.16 million via foreign banks.
Among individual banks, Islami Bank recorded the highest inflow at $275.42 million, followed by Agrani Bank, Sonali Bank, and BRAC Bank.
The surge is attributed to higher exchange rates offered by banks for remittances, prompted by Bangladesh Bank's directive to settle pending import liabilities by month’s end.
Remittance houses have corroborated the trend, reporting increased exchange rates for remittance dollars.
Currently, most banks are purchasing remittance dollars at over Tk124.
The surge in remittance inflows aligns with the political transition last August.
November recorded a remittance inflow of $2.2 billion, marking a 14% year-on-year increase from $1.93 billion in November 2023.
October recorded $2.39 billion, a 21% rise from the same month last year. September and August recorded $2.4 billion and $2.22 billion, respectively.
The highest remittance inflow this year was recorded in June, totalling $2.54 billion, the highest in three years.
The previous single-month record was $2.59 billion in July 2020.
Remittance remains the only liability-free source of foreign exchange for Bangladesh, as it requires no expenditure on raw materials or equipment imports.
Unlike export earnings, which necessitate significant outflows for production, and foreign loans, which require repayment in dollars, remittances directly bolster the country’s dollar reserves.
