The last few days have seen positive development on the country's financial horizon. Remittances hit a record in 2025, helping shore up reserves. According to Bangladesh Bank data, Bangladeshis abroad sent home a record US$32.8 billion in 2025. Economists have observed that more expatriates are now using formal banking channels. This historic high inflow has given the country's fragile external balance a much-needed boost. The amount is 22 per cent higher than the US Dollar 26.88 billion recorded in the previous year, according to Bangladesh Bank data.
In December 2025 alone, remittances reached US$3.27 billion, the highest monthly inflow in nine months, up 22 per cent from the same month last year. Foreign currency inflows have also lifted gross reserves to US$33.18 billion on December 30, up from US$25 billion a year earlier. This is seen as a good sign compared to previous years, when demand for hundi was growing, with large sums of money reportedly being siphoned abroad. It may also be noted that during the July-December period last year, expatriates sent home US$16.26 billion -an 18.1 per cent increase on the same period in 2024, according to BB data. Financial industry insiders have also indicated that different government incentives, banks' efforts to attract foreign funds, and the decline of the hundi system have helped push inflows higher since August 2024.
Between January and December 28, 2025, as many as 1,116,725 men and women have gone overseas. In 2023, 1,303,453 workers went abroad, while 1,011,969 left the country for overseas jobs in 2024, according to official data. According to the Bureau of Manpower, Employment and Training, Saudi Arabia welcomed 744,619 Bangladeshi workers, Qatar 106,805, and Singapore 69,491 during the first 11 months and 28 days of the year.
In December, Islami Bank Bangladesh recorded the highest inflow of $671 million, followed by Bangladesh Krishi Bank with $353 million, Janata Bank with $281 million, and BRAC Bank with $261 million, according to BB data. With rising remittances easing demand for US dollars, Bangladesh Bank has also purchased over US$3 billion in the current fiscal year. This reflects ongoing efforts to shore up foreign exchange reserves.
Bangladesh's foreign exchange reserves have climbed to a three-year high, crossing the US Dollar 33 billion mark, driven by strong remittance inflows and continued dollar purchases by Bangladesh Bank. According to the latest data, the surge has eased pressure on the Dollar market and helped stabilize the country's external sector.
Gross foreign exchange reserves now stand at $33.18 billion, the highest level since 2022. In contrast, reserves had fallen to $25.58 billion during August 2024. However, under the IMF's Balance of Payments and International Investment Position Manual (BPM6) methodology, reserves are currently calculated at US$28.51 billion, up from US$20.47 billion earlier. It may be noted here that Bangladesh's reserves first crossed the US$33 billion threshold in 2017 and later reached a historic peak of US$48 billion in 2021 before entering a period of decline.
To strengthen reserves and maintain market stability, Bangladesh Bank has so far purchased more than US$3.13 billion from commercial banks, including over US$1 billion in December 2025 alone. Bangladesh Bank Governor Dr Ahsan H. Mansur recently expressed optimism about the outlook, saying, "We are building reserves by purchasing Dollars from our internal economy instead of relying on external borrowing from the IMF or other agencies." The Governor has described this approach as a sustainable and positive step for the country's long-term financial stability.
On the outflow side, pressure has eased as Letter of Credit openings remain subdued. Import demand has remained under control, particularly for non-essential items. This is because banks are being cautious in approving LCs, and businesses have adjusted to tighter trade finance conditions. Lower LC openings have reduced immediate dollar demand, directly supporting reserve growth.
On the other hand, while scheduled external debt repayments have continued, fresh large-scale foreign borrowing has remained limited. This has helped prevent reserve erosion. Project loans and budgetary support have come in selectively, but the overall contribution of new foreign loans has been smaller than in previous years.
Foreign direct investment has also shown mixed performance. Net inflows have improved modestly from their weakest period but still remain below long-term potential. FDI contributed to the dollar supply, but it has not been the main engine of the reserve rebound. In short, the recovery remains overwhelmingly remittance-led. stands near US$28.5 billion, still sufficient to cover more than five months of imports. This enables level policymakers to see a more comfortable current global environment.
One also needs, at this point, to refer to some functional observations made by the Foreign Affairs Adviser, M Touhid Hossain, at the beginning of the NRB Global Convention 2025. He made significant remarks regarding the country's economic recovery and the role of expatriate Bangladeshis. He said, "Remittances sent by expatriate Bangladeshis have played a crucial role in supporting the country's economy. Since the current government took office, the tireless efforts of expatriate workers have helped stabilise the economy." He further mentioned, "Using India's example, the country has benefited economically by leveraging the skills and global position of its expatriate citizens. Similarly, Bangladesh now has a 'critical mass' of expatriates who can play a significant role in the country's development."
A key aspect of the convention was the direct participation of high-level policymakers. Expatriate entrepreneurs were given the opportunity to present real investment challenges and opportunities directly to policymakers. The day-long seminar featured discussions on various key topics, including health, education, development, economics, information technology, and innovation. Renowned individuals from both the country and expatriate communities participated as keynote speakers and panelists. Additionally, the NRB Award was presented to recognise the significant contributions of expatriate Bangladeshis.
Expatriate entrepreneurs expressed that if the government ensured policy support, transparency, and an investment-friendly environment, they would be interested in making large-scale investments in Bangladesh. The convention demonstrated that with proper planning and policy support, expatriate Bangladeshis can become a key driver in the country's economic development.
The Convention was attended by expatriate entrepreneurs, industrialists, businesspeople, doctors, engineers, scientists, teachers, IT professionals, and other professionals from approximately 25 countries. This variety of presence indicates that many countries and their economic and commercial institutions are carefully following Bangladesh's path. Such a functional matrix will help Bangladesh in the future.
Muhammad Zamir, a former Ambassador is an analyst specialised in foreign affairs, right to information and good governance. muhammadzamir0@gmail.com
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