Bangladesh draws highest monthly remittances of $3.75b in March
The previous record was $3.29 billion in March 2025.
Bangladesh recorded its highest-ever monthly remittance inflow in March, with expatriates sending home $ 3.75 billion driven by seasonal, economic and geopolitical factors.
According to data released by Bangladesh Bank today (1 April), remittance inflows reached $3.75 billion breaking all previous records. The earlier highest inflow stood at $3.29 billion, while December had recorded the third-highest at $3.22 billion.
Bankers and central bank officials attributed the surge to a combination of Eid-related transfers, global uncertainties and improved exchange rates.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said remittance inflows normally rise during Eid months as expatriates send more money to support their families.
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Pointing to geopolitical tensions in the Middle East as a contributing factor, he said due to ongoing conflicts, many expatriates have sent their savings home earlier than usual amid uncertainty over future transfers.
Another important factor was the favourable exchange rate, which encouraged remitters to use formal banking channels instead of informal systems, he said.
A deputy managing director of a private bank told The Business Standard that expatriates benefited from higher earnings during Eid, including bonuses and salaries, which boosted remittance flows.
He added that the exchange rate rose from Tk122.30 to Tk123 per dollar in March, allowing senders to receive about 70 paisa more per dollar, further incentivising official transfers.
A senior Bangladesh Bank official said remittance inflows have increased significantly since 5 August, 2024. However, the rise is not necessarily due to higher incomes or increased migration, but rather a shift towards formal channels.
"The dominance of informal hundi networks has declined, leading to more remittances coming through banks," the official said.
Since the beginning of the current fiscal year, the central bank has been purchasing dollars from commercial banks, accumulating over $5.5 billion. However, it has recently halted dollar purchases through auctions.
Officials said there is currently no shortage of dollars in the banking system, although exchange rates have started to rise following the Iran-Israel conflict.
Central bank Governor Md Mostaqur Rahman recently said the country has sufficient foreign exchange reserves to handle increased import costs, even if global fuel prices rise.
Deputy Governor Kabir Ahmed added that remittance inflows could remain strong in the near term, especially if expatriate workers facing job losses abroad return home with accumulated savings and benefits, which are typically sent back as remittances.
