Bangladesh has witnessed a marked surge in remittance inflows in the run-up to the forthcoming national election, with expatriates sending home an average of Tk 15.5 billion (£equivalent in local currency) per day so far this month. The sustained rise over the past two months has provided a timely boost to the country’s foreign exchange position and eased pressure on the domestic currency market.
According to the latest data released by Bangladesh Bank, expatriate Bangladeshis remitted US$1.135 billion during the first nine days of the current month. In local currency terms, this amounts to approximately Tk 139.6 billion. The figure represents a substantial 32.3 per cent increase compared with the same period in February last year, when remittances totalled US$866 million.
Recent Remittance Performance
A comparison of recent monthly inflows illustrates the renewed momentum in remittance earnings:
| Period | Remittances (US$ billion) | Observations |
|---|---|---|
| December (previous year) | 3.22 | First time in five months above $3bn |
| January (current year) | 3.17 | Continued strong inflow |
| February (first 9 days, current year) | 1.135 | 32.3% higher year-on-year |
| February (first 9 days, previous year) | 0.866 | Lower base for comparison |
In the five months preceding December, monthly remittance inflows had remained below the US$3 billion mark. The rebound since December signals renewed confidence among overseas workers in formal banking channels, aided by policy incentives and improved exchange rate management.
Banking officials note that remittance flows traditionally rise ahead of the two major Islamic festivals, when expatriates send additional funds to support their families. However, several senior bankers suggest that the current upswing is also linked to the election cycle. Countries with large Bangladeshi diaspora communities — particularly in the Middle East, the United Kingdom, the United States and Malaysia — have contributed significantly to the increase. There are also indications that funds raised abroad in connection with political activities are being channelled home under the classification of remittances.
Impact on Foreign Exchange Reserves
In 2025, Bangladesh received a total of US$32.82 billion in remittances, nearly equivalent to the country’s prevailing foreign exchange reserves. The robust inflow helped stabilise the dollar market at a time when many emerging economies faced currency volatility. Throughout the year, Bangladesh Bank actively purchased US dollars from commercial banks to bolster reserves and maintain exchange rate stability.
Economists argue that remittances, alongside export earnings, remain one of the most critical pillars of Bangladesh’s external sector. Strong inflows not only strengthen reserves but also help finance imports and cushion the balance of payments.
Withdrawal Constraints During Bank Closure
Despite the surge in inflows, access to funds has been temporarily constrained. Owing to election-related public holidays, banks have remained closed for four consecutive days, preventing beneficiaries from withdrawing money directly from branch counters. Those with ATM cards, however, have been able to access cash, with withdrawal limits of up to Tk 200,000 per day depending on the bank.
Interbank fund transfer services have been suspended for the election period, and mobile financial services — including bKash, Rocket and Nagad — have been operating on a restricted basis. Consequently, some recipients have faced delays in accessing remitted funds.
Overall, the pre-election remittance boom has provided a short-term cushion to the economy. Whether this elevated pace will persist beyond the political cycle will depend on continued policy support, exchange rate stability, and sustained confidence among overseas workers in formal remittance channels.