Remittance inflow breaks record, hits $25b in 10 months as hundi dominance declines
Previously, the highest remittance inflow -- $24.77 billion -- in a fiscal year was recorded in FY2020-21, according to BB data
Highlights:
- Remittance hit $25.27b in 10 months of FY25
- $601m has been received in first 7 days of May
- Hundi use dropped after interim govt took over
- Banks offer better dollar rates than illegal channels
- March saw a record $3.29b inflow
- Steady rise since August 2024 eased dollar crisis
In the first 10 months and seven days of the current fiscal year of 2024-25, remittance inflow has surpassed $25 billion — breaking all previous records even before the fiscal year ended.
Arif Hossain Khan, spokesperson for Bangladesh Bank (BB), confirmed the matter to The Business Standard today (12 May).
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Previously, the highest remittance inflow -- $24.77 billion -- in a fiscal year was recorded in FY2020-21, according to BB data.
Bankers have said the use of hundi (illegal money transfer) has significantly decreased since the interim government took over. Also, the dollar exchange rate is currently higher through official banking channels, so people are no longer willing to take the risk of using illegal channels to send money back home.
Moreover, they said, the 2.5% incentive that was previously offered is still in place. As a result, with the decline in hundi and money laundering, remittance through banks is increasing.
This surge in remittance inflow has also eased the dollar shortage previously faced by banks, they added.
According to BB data, a record-breaking $3.29 billion in remittances was received in March, when Eid-ul-Fitr was celebrated — setting a historical high for the country.
The inflow, however, has continued steadily even after Eid.
In April, expatriates sent over $2.75 billion, and in just the first seven days of May, $601 million has been received.
Altogether, from July 2024 to 7 May 2025, Bangladesh has received $25.27 billion in remittances.
In comparison, during the same period of the previous fiscal year of 2023-24, the country had received $19.72 billion in remittances.
Central bank data shows that since the fall of the Awami League government in August last year, remittance inflow has been rising every month.
In August 2024, $2.22 billion was received; $2.40 billion in September; $2.39 billion in October; $2.19 billion in November; and $2.63 billion in December.
That trend has continued into 2025, with $2.18 billion in January and $2.52 billion in February.
