The flow of inward remittances to Bangladesh has witnessed a significant upward trend during the initial period of May 2026, driven largely by the upcoming religious festival of Eid-ul-Adha. Projections suggest that non-resident Bangladeshis are accelerating their fund transfers to support family expenditures related to the sacrificial festival, which is expected to take place toward the end of the month. This seasonal surge is a recurring phenomenon in the Bangladeshi economy, as expatriates traditionally increase their financial contributions during major lunar festivals.
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Record Figures for Early May
According to the latest data released by the central bank, Bangladesh Bank, expatriate workers dispatched $1.029 billion in remittances through official banking channels within the first nine days of May. When converted at the prevailing exchange rate of 122.75 BDT per US Dollar, this equates to approximately 12,630.97 crore BDT. On a daily average, the nation is receiving nearly 1,400 crore BDT in foreign exchange.
On Sunday, 10 May, Arif Hossain Khan, the Executive Director and Spokesperson of Bangladesh Bank, confirmed these figures. He noted that this volume represents a substantial 19.1 per cent increase compared to the corresponding period of the previous year. This robust performance in May follows a consistent pattern of growth observed throughout the 2025–26 fiscal year.
Fiscal Year Performance and Growth
The cumulative data for the current fiscal year highlights a broader recovery in the country’s foreign exchange earnings. From July 2025 to 10 May 2026, total remittance inflows reached $30.0362 billion. This is a marked improvement over the $25.401 billion recorded during the same period in the previous fiscal year. Overall, the remittance sector has experienced a year-on-year growth rate of 19.5 per cent.
The monthly breakdown of remittance inflows for the current fiscal year provides a clear view of this sustained momentum:
July: $2.4778 billion
August: $2.4218 billion
September: $2.6855 billion
October: $2.5624 billion
November: $2.8897 billion
December: $3.2236 billion
January: $3.1716 billion
February: $3.02 billion
March: $3.7522 billion
April: $3.1273 billion
Strategic Drivers Behind the Inflow
Officials from the central bank attribute the steady rise in official remittances to several strategic interventions. The Government of Bangladesh and the central bank have intensified efforts to combat Hundi—an informal and illegal cross-border money transfer system. By strengthening monitoring and improving the efficiency of formal banking channels, authorities have successfully diverted a larger portion of funds into the regulated economy.
Furthermore, the government continues to provide a 2.5 per cent cash incentive on remittances sent through legal channels. Many commercial banks have supplemented this with additional incentives, making formal transfers more attractive to expatriates. The recent introduction of a more flexible exchange rate mechanism has also narrowed the gap between the official rate and the “curb market” or informal rate, further encouraging the use of the banking system.
Outlook for the Remainder of May
As the preparations for Eid-ul-Adha intensify, Bangladesh Bank officials anticipate that the pace of remittance will accelerate further in the coming fortnight. The demand for local currency typically peaks during this period due to the purchase of sacrificial animals and increased consumer spending. For a country currently managing its foreign exchange reserves, this surge provides a critical cushion for the national balance of payments. The central bank remains optimistic that May 2026 could set a new monthly record if the current daily average of 1,400 crore BDT is maintained.