Remittances Propel Reserves to Historic Highs

The decisive importance of migrant workers’ remittances to Bangladesh’s economy was reaffirmed over the course of the recently concluded year, with inflows reaching levels that have had a direct and visible impact on the country’s foreign exchange reserves. Nowhere was this more apparent than in December, when remittance receipts surged sharply, marking not only a strong end to the year but also a milestone in the broader management of foreign currency.

According to the latest figures released by Bangladesh Bank, total remittance inflows over the full calendar year were broadly equivalent to the country’s entire stock of foreign exchange reserves—an exceptional outcome that underscores the stabilising role played by expatriate earnings. This development has been widely interpreted by economists as a positive signal for macroeconomic resilience at a time when many emerging economies continue to face external pressures.

In December alone, remittances amounted to USD 3.22 billion, the second-highest monthly inflow ever recorded in Bangladesh. The all-time monthly record was set in March of the previous year, when expatriates sent USD 3.29 billion ahead of Eid-ul-Fitr. By comparison, remittances in November stood at approximately USD 2.89 billion, meaning that December witnessed a month-on-month increase of roughly USD 330 million. This sharp rise highlights the renewed momentum in formal remittance channels.

Analysts attribute this growth to several converging factors. With a national election approaching, many expatriates reportedly opted to transfer additional funds home as a precautionary measure. At the same time, relative stability in the official exchange rate and improved confidence in the banking system have reduced reliance on informal channels such as hundi. Enhanced monitoring and incentives for remitting through legal avenues have further reinforced this trend.

Over the entirety of 2025, Bangladesh received USD 32.82 billion in remittances. Significantly, this figure is almost identical to the country’s total foreign exchange reserves, illustrating how crucial expatriate income has become in sustaining liquidity. Continuous inflows helped prevent a dollar shortage in the banking sector and played a key role in containing exchange-rate volatility.

Throughout the year, Bangladesh Bank remained active in the foreign exchange market, purchasing dollars from commercial banks as needed to maintain stability. As a result, foreign exchange reserves climbed to around USD 33 billion by the end of 2025, the highest level seen in three years. This marked a notable recovery from August 2024, when political uncertainty had driven reserves down to about USD 26 billion and pushed the dollar rate to a peak of BDT 128. With conditions improving, the exchange rate has since eased to around BDT 122 per dollar.

As per the central bank’s latest data, gross reserves currently stand at USD 33.18 billion, while reserves calculated under the IMF’s BPM-6 methodology amount to USD 28.51 billion. On the same reporting day, Bangladesh Bank purchased USD 89 million through auctions from seven banks at a rate of BDT 122.30 per dollar. In the first six months of the 2025–26 fiscal year alone, the central bank has bought a total of USD 3.13 billion, more than USD 1 billion of which was acquired in December.

Overall, the sustained and robust flow of remittances has significantly strengthened Bangladesh’s external position, restored confidence in the economy, and laid a promising foundation for future financial stability.

Recent Remittance and Reserve Snapshot