Foreign exchange reserves in Bangladesh have received a substantial boost following a sharp rise in inward remittances, which expanded by 13.1 per cent between March and August this year. Non-resident Bangladeshis dispatched $18.94 billion back home during this six-month window, marking a noticeable $2.2 billion increase compared to the $16.74 billion recorded over the corresponding timeframe last year.
Data released by Bangladesh Bank highlights a consistent upward trajectory, with five out of the six months recording positive year-on-year expansion. The surge peaked in August, which logged a standout growth rate of 22.3 per cent.
Economic analysts view this sustained momentum as a critical lifeline for the national economy, which has faced lingering balance-of-payments pressures, currency depreciation, and reserve erosion over recent years. Remittance receipts remain the second-largest source of foreign currency for Bangladesh after the ready-made garment export sector, playing a vital role in supporting family livelihoods, healthcare, education, and domestic consumption across millions of households.
March set a strong baseline with inflows reaching $3.75 billion, a 13.6 per cent increase over the $3.30 billion recorded in March of the previous year. April maintained the tempo, drawing $3.13 billion to achieve a 13.8 per cent year-on-year rise. By May, incoming funds reached $3.43 billion, reflecting a 15.5 per cent year-on-year jump. June proved to be the sole flat period, pulling in $2.81 billion compared to $2.82 billion during the same month last year.
Rebound was swift in July as receipts touched $2.86 billion, representing a 15.3 per cent year-on-year increase. The trend culminated in August with $2.96 billion in remittances, comfortably outpacing the $2.42 billion registered twelve months prior—an increase of $540 million in a single month.
Speaking on the performance, Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, emphasized that the steady inflows reflect renewed faith in formal financial channels. The central bank, alongside central government authorities, has intensified efforts to curb illicit curb-market transfers, commonly known as hundi, while streamlining formal banking procedures to make cross-border transactions faster, cheaper, and safer.
Strengthening official banking incentives, offering competitive exchange rates, and improving financial access for migrant workers have significantly redirected capital flows away from informal markets. Central bank officials anticipate that as foreign exchange reserves stabilize further, macroeconomic resilience, balance of payments, and liquidity across the external sector will continue to improve.
