Remittance: Bangladesh receives $2b in 21 days of December

Bangladesh has received $2 billion in remittances in just 21 days of December, according to the latest update from Bangladesh Bank.

This marks a slight increase from the $1.99 billion sent in December 2023.

The surge in remittances has been attributed to expatriates opting for legal channels, particularly following the political transition in the country.

Reports indicate that many overseas Bangladeshis had concerns that remittances under the previous government were being diverted for money laundering purposes, fueling hesitation in sending money through official systems.

The shift appears to have been bolstered by an increase in confidence in the country's banking system.

Husneara Shikha, executive director and spokesperson of Bangladesh Bank, said stronger regulatory monitoring has expedited the flow of remittances and ensured timely disbursement to beneficiaries.

The central bank maintains strict supervision of remittance flows to ensure they are distributed to recipients as quickly as possible, she noted.

Additionally, banks have introduced competitive exchange rates and incentives for remittance senders, further encouraging the use of formal banking channels. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank Limited (MTB), highlighted these incentives as a key driver of the uptick in remittance activity.

Between July and December (up to 21 December), expatriates sent $13.14 billion to Bangladesh, signalling a steady recovery in remittance inflows. Bankers anticipate that December may set a new record for monthly remittance earnings.