Remittance to Bangladesh jump 26.8% in FY 2024-25

Bangladesh received a record-breaking US$30.33 billion in remittances for the fiscal year 2024- 25, an increase of 26.8 percent from the previous year's US$23.91 billion, marking the highest inflow in the country's history. This surpasses the earlier record of US$24.77 billion sent in FY2020-21. The momentum continued into the new fiscal year, with significant year-on-year growth seen in July and August 2025. This record remittance figure highlights the resilience of the global Bangladeshi diaspora and their commitment to supporting the country's economy. The increase in remittances plays a vital role in supporting Bangladesh's economy. Continued efforts by Bangladesh Bank to streamline remittance channels are contributing to this success.

Bangladeshis living and working abroad remitted back US$4.9 billionin the July-August period, central bank data showed. According to the data, remittance, one of key sources of foreign exchange for the impoverished nation, increased 8.90 percent year-on-year to US$2.42 billion dollars in August 2025. Bangladeshis remitted home nearly US$2.5 billion in July. Riding on the growing inflow of remittances, Bangladesh's gross foreign exchange reserves rose to US$30 billion by July 24, 2025, as per the traditional calculation of the central bank.

However, as per the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh's net reserves currently stand at US$24.99 billion. Apart from neutralising hundi, bankers said the prevailing stable exchange rate played a key role in alluring remitters to choose formal options to send their money back home as the rate differential between banks and the kerb market is too small. According to market players, remitters are getting a maximum exchange rate of Taka 122.89 a dollar from the banking system, while it is Taka 125 a dollar in the kerb market.

Planning Adviser Dr Wahiduddin Mahmud said that there is increase in remittance inflow since improvement in the balance of payments is visible side by side the Taka-Dollar exchange rate has also remained in a stable state. He said the decision to make the exchange rate as market-based did not cause any difficulty rather the exchange rate did not became volatile at all brushing aside the concerns from many. “We made the exchange rate as market-based of our own considerations although it was the prescription of others (IMF)…the confidence on Taka has been increasing,” he added.

Dr Mahmud opined that the inward remittance through legal channel has been increasing since there is no speculation now of abruptly increasing the dollar price for which the expatriates have no such tendency of holding up the remittance. He said although the investment flow is not increasing up to the expected level, but the inward remittance especially in the expatriates-prone areas has been acting as catalyst for the economy. “It’s compensating the stagnancy in investment to a big extent. For this, the rural economy has not become stagnant as it was expected. Now the economy is gradually reviving and inward remittance is a big reason for this. Besides, the exports are also increasing,” he added. Deputy Managing Director (DMD) of the Premier Bank Abdul Quaium Chowdhury said the demands for hawala — informal cross-border money transfer channels -- have declined following a crackdown on operators after the political changeover. “This has diverted more remittances through formal banking channels,” he added.