Remittance Growth Following Political Change in Bangladesh
Bangladesh sees the highest record of remittance since 2024. This coming Eid is the first since the political instability that took place in August 2024. Due to a decline in money laundering, expatriates have been remitting more money through legal routes than ever before. Consequently, the inflow of remittances throughout the holy month of Ramadan has increased to unprecedented levels.
Stabilization of Dollar Shortage
This rise in remittances has significantly alleviated the dollar shortage that banks were previously struggling with, and officials report a stabilization of the dollar exchange rate. Banks are now purchasing remittances from foreigners at the central bank’s maximum rate of 123 taka per dollar.
Remittance Flow in March
The first 15 days of March witnessed remittance inflows of $1.66 billion. Which increased to $2.25 billion by March 19 (with $130 million arriving in a single day), $2.43 billion by March 22, $2.7 billion by March 24, and $2.95 billion on March 26. In the first week of March, remittance inflows averaged $110 million per day, increasing to $120 million in the second week, according to data from Bangladesh Bank.
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Remittances have historically peaked around the two Eid celebrations. Prior to the last Eid-ul-Fitr expats sent an average of $90 million every day, or $450 million in just five days. Remittance inflows increased during the next few days.
Monthly Remittance Growth Since August 2024
Since the political shift in August 2024, expatriates have consistently sent more than $200 million each month. In February 2025 remittances reached $2.53 billion a 17% increase compared to the same period last year. In March 2025 the inflows were 3% higher than the previous year.
Record Remittances for FY 2024-25
For the first eight months of the 2024-2025 fiscal year (July-March), expatriates sent a total of $18.49 billion, marking a 24% increase compared to the same period in the previous year. In the 2023-2024 fiscal year, remittances amounted to $14.93 billion during this period.
Impact on Dollar Exchange Rate and Imports
The competition among banks to purchase remittance dollars has decreased, resulting in the dollar exchange rate stabilizing at 123 taka per dollar. This has helped keep the prices of imported goods, especially food items, from rising significantly, unlike when the exchange rate had previously peaked at 128 taka per dollar.
