Banking discipline and accountability key to sustaining remittance growth
Bangladesh’s remittance inflows hit an all-time high in FY25, but economists warn that sustaining the momentum will depend less on migrant numbers and more on trust, transparency, and discipline in the banking system
Expatriate Bangladeshis sent a record $30.04 billion in remittances in the 2024–25 fiscal year, the highest amount ever received in a single fiscal year in the country's history. This represents a 25.50% increase compared to the $23.74 billion received in the previous fiscal year, according to the central bank.
Remittance plays a critically important role in Bangladesh's economy, and recent trends show that the flow has become relatively stable. In the current fiscal year so far, monthly remittance inflows have fluctuated between $2 billion and $3 billion. If there is no major disruption in the banking system and the new political government does not create space for financial irregularities, remittance inflows are expected to remain broadly stable.
The recent rise in remittances is also linked to the mindset of expatriate workers. Many migrant workers now view themselves as "remittance fighters," believing they played a role in the country's recent political changes. From this sense of responsibility, they are sending money home to support the country. The interim government's decision to respect the voting rights of expatriate Bangladeshis sent a strong political message, which helped generate positive sentiment among migrants and encouraged the use of formal remittance channels.
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In the final years of the previous government, remittance inflows had stagnated at around $21 billion. The main reasons were irregularities in the banking sector, money laundering, and a loss of trust among expatriates. As confidence in the banking system eroded, many migrants shifted away from formal channels and turned to hundi. The sustainability of remittance inflows depends largely on the transparency and credibility of the banking system. If this trust is undermined again, the use of hundi will increase, posing serious risks to the national economy.
To sustain the current positive trend, discipline in the banking sector must be ensured and the trust-based relationship between the state and expatriate citizens must be strengthened. Rather than chasing numbers, greater attention should be given to the quality of remittances. There is no need to send 1.2 to 1.3 million workers abroad every year. If remittance inflows remain stable, the focus should be on ensuring fewer but more skilled and accountable migrants.
Tasneem Siddiqui is the founding chair of Refugee and Migratory Movements Research Unit.
