Remittance inflows rise 15.8% to $2.86b in July

Bangladesh received $2.86 billion in remittances in July, the first month of FY27, marking a 15.79% year-on-year increase, according to the Bangladesh Bank data released today (2 August).

The country received $2.47 billion in remittances in July of the previous fiscal year while inflows stood at $2.82 billion in June this year.

Despite the annual growth, July recorded the second-lowest monthly remittance inflow in the past nine months, central bank data showed.

Dr Mohammad Jalal Uddin Sikder, migration expert and associate professor at North South University, said the Middle East war may have affected remittance flows.

"Since the Middle East is the main hub for remittances, the war could have had an impact. It is important to examine which countries recorded lower inflows. During conflicts, hundi networks often become more active by offering better exchange rates, so the government should investigate whether remittances are shifting to informal channels," he told this newspaper.

Bankers said remittance inflows over the past two months have fallen short of expectations, largely due to the conflict in the Middle East, warning that weaker inflows could add pressure to the country's foreign exchange market.

A managing director of a private bank told TBS that the US dollar has continued to strengthen, with many banks settling import letters of credit at Tk123.95 last week.

"The dollar appreciates when demand outpaces supply," he said.

The central bank has also suspended dollar purchases from commercial banks for the past one and a half months as the taka faces depreciation pressure.

During FY26, the regulatory bank bought $6.4 billion from banks when the taka was under appreciation pressure. Its last dollar purchase was on 4 June. Bangladesh received a record $35.5 billion in remittances in FY26.

Economists say the strong remittance inflow has helped improve the country's current account balance by narrowing the external deficit.