Remittance hits second-highest monthly record of $2.97b in May ahead of Eid

Highlights:

• Highest ever monthly remittance of $3.29b was recorded in March 2025
• May's inflow jumped 31.7% YoY, from $2.25 billion in May 2024
• $27.51 billion received in 11 months of FY25
• As of latest data, gross foreign exchange reserves (BPM6) stand at $20.5 billion

Bangladesh has received $2.97 billion in remittances in the recently concluded month of May, marking the second-highest monthly inflow in the country's history. 

The surge is attributed to the stability of the US dollar exchange rate and the upcoming Eid-ul-Adha, prompting expatriates to send more money home ahead of the festival.

The record-breaking inflow follows the all-time highest monthly remittance of $3.29 billion in March this year, which too was primarily driven by Eid-ul-Fitr celebrations.

Bankers said the rise in May's remittance was driven by expatriates sending more money to their families ahead of Eid-ul-Azha, with reduced reliance on informal channels like hundi also playing a role.

According to Bangladesh Bank data, May 2024 saw remittances worth $2.25 billion, meaning inflows rose 31.7% year-on-year in May this year.

In the 11 months (July-May) of the current fiscal year, total remittance inflows reached $27.51 billion which is an increase of 28.7% compared to $21.37 billion in the same period of the previous fiscal year, as per the central bank data.

Sheikh Mohammad Maroof, managing director of Dhaka Bank, told The Business Standard, "I believe $2.75 to $3 billion is now our regular monthly inflow. 

"With no volatility in the dollar rate, expatriates are increasingly using formal banking channels. Credit must go to the central bank's shift to a market-based exchange rate."

He noted that the dollar is currently trading between Tk122 and Tk123.

After much speculation, on 15 May, the Bangladesh Bank finally announced a shift to a market-based exchange rate regime, allowing market participants to trade dollars at freely negotiated rates, in line with conditions set by the IMF – which meant that banks and money changers could now set exchange rates based on supply and demand.

However, the central bank continues to monitor the market closely to ensure stability.

The official also noted that remittances have averaged around $2.5 billion per month since last August, and if the trend continues, the annual total could cross $30 billion.

Several months ago, Bangladesh Bank Governor Ahsan H Mansur had predicted that remittance inflow may cross $30 billion in FY25, which is becoming true now, the official added.

As of today, Bangladesh Bank data shows the country's gross foreign exchange reserves, calculated under the BPM6 method, stand at $20.5 billion.