Remittance inflows to Bangladesh surpassed $2.5 billion in February as expatriates sent additional funds presumably to support their families ahead of Ramadan.
According to Bangladesh Bank data, remittance inflows rose to $2.52 billion in February, up from $2.17 billion in the same month last year and $2.18 billion in January this year.
Bankers attributed the surge to seasonal factors, as expatriates typically send more money home during Ramadan, which began on March 2.
The inflow may increase further with Eid-ul-Fitr approaching, as remittances generally peak during major religious festivals.
From July 2024 to February 2025, remittance inflows totaled $18.5 billion, marking a 23.8 per cent increase from $14.95 billion in the same period of the previous financial year.
February was also the seventh consecutive month in which remittances remained above $2 billion.
The first half of the 2024-25 financial year saw a record-high remittance inflow of $13.77 billion, with December alone contributing $2.63 billion.
Moreover, the rise in the dollar exchange rate and a reduction in money laundering through illegal channels such as hundi also contributed to the surge in remittance.
After the political shift in Bangladesh on August 5, 2024, remittance inflow through formal channel surged.
The high remittance inflows have helped the central bank repay significant foreign overdue payments by the end of December.
Despite these repayments, the country鈥檚 foreign currency reserve, according to the International Monetary Fund guidelines, increased to near $21 billion on February 27.
The interbank dollar rate increased to Tk 122 in January from Tk 110 in December 2023.
In addition to the rate, the remitters enjoyed government鈥檚 incentive.
The government and the central bank have taken various measures to increase remittance inflow through formal channels, BB officials said.
On January 1, 2022, the government increased cash incentive on remittances to 2.5 per cent from 2 per cent to encourage migrants to send more money through the banking channel.
The dollar rate was Tk 110 in December 2023, Tk 99 in December 2022 and Tk 84.8 in July 2021.
The remittance inflow reached $23.9 billion in FY24, up from $21.6 billion in FY23.
