BD poised to cross $3.0b mark in expatriates' fund receipt

March appears as a golden month as Bangladesh is on course to cross US$3.0-billion mark in remittance earnings for the first time in its history, with inflows reaching $2.945 billion in 26 days.

Sources at the central bank said by the last banking day of the month --Thursday, March 27 -- the total remittances will exceed $3.0 billion. The previous record was $2.639 billion, set in December 2024.

Officials, however, attribute the rise to increased remittances ahead of Eid-ul-Fitr, the biggest Muslim festival.

"Remittance inflows will definitely cross $3.0 billion this month, setting an all-time record," a senior Bangladesh Bank official told the FE Thursday.

Central bankers said the informal money-transfer system, commonly known as hundi, is rapidly disappearing following latest remittance-promotion measures. They also said the exchange rate between the taka and the US dollar stabilised, encouraging expatriates to send money through formal banking channels.

The officials linked the rise in remittances to recent political changes, suggesting that individuals previously engaged in "crony capitalism" left the country.

"In the past, these individuals used banks to siphon off funds through banking channels," says one central banker about the changeover.

The term crony capitalist refers to individuals with close ties to ousted Prime Minister Sheikh Hasina, who allegedly benefited from preferential treatment in the financial sector.

Officials also credited mobile financial services (MFS) and digital- banking technologies for facilitating remittance inflows.

The rise in remittances has significant implications for Bangladesh's economy, helping to stabilise foreign-exchange reserves and support the forex market.

Bangladesh Bank monitors remittance trends regularly.

In its February 2025 report, the central bank says remittance inflows typically increase during religious festivals and other occasions. Inflows peak in June -- end of fiscal year -- and December that ends the calendar year.

It says Dhaka was the biggest receiving division - $1.22 billion (48.4 per cent of total inflows) followed by Chattogram - $727.4 million (28.8 per cent). Sylhet positioned three- $207.4 million (8.2 per cent).

jasimharoon@yahoo.com