Remittance inflow hits $3.17b in January, third-highest on record

Infographic: TBS

Bangladesh received $3.17 billion in remittances in January 2026, marking the third-highest monthly inflow on record and a 45.41% increase compared with the same month a year earlier.

The figure was disclosed today (1 February) by Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan. 

In January 2025, remittance inflow stood at $2.18 billion. The highest monthly remittance in the country's history was recorded in March 2025 at $3.29 billion, followed by $3.22 billion in December the same year.

According to central bank data, total remittance inflow during the first seven months of the current 2025-26 fiscal year (July-January) reached $19,436 million, up from $15,962 million in the corresponding period of the previous fiscal year.

Cracking down on hundi

Bankers and economists attribute the surge largely to a shift away from informal money transfer systems, commonly known as hundi, towards formal banking channels.

Mohammad Ali, managing director and chief executive officer of Pubali Bank, told TBS that the decline in hundi transactions has significantly increased remittance inflows through official channels. "Remittance sent through hundi has decreased, which is why more funds are now coming through the banking channel," he said.

'Election momentum'

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, observed that remittance inflows have gained momentum following the change in government. "Since the fall of the previous government, we have seen strong momentum in remittance inflows. The main reason is the closure of hundi routes, forcing remittances to come through formal banking channels," he said.

He added that remittance inflows typically rise ahead of elections and noted that over the past six years, around 46 lakh Bangladeshis have gone abroad for employment, many of whom are now sending money home.

Challenge ahead

However, Mustafizur cautioned that sustaining the current momentum will depend on the policies of the next elected government. "This momentum may continue for a few months after the election, but maintaining stability in the remittance market will require proper management of both supply and demand."

The increase in dollar supply has eased pressure on the exchange rate. Since July of the current fiscal year, the Bangladesh Bank has been purchasing US dollars from commercial banks to stabilise the market. So far, the central bank has bought nearly $4 billion through auctions.

Despite the record remittance inflows, the country's external balance remains under strain. The latest balance of payments data show that the current account deficit widened due to a growing trade gap driven by higher imports.

Without the strong remittance performance, the deficit would have been significantly larger. Between July and November, the current account balance was negative $696 million.