According to a recent report by the Bangladesh Bank, expatriates have sent $1.63 billion in remittances to Bangladesh during the first 21 days of September 2024. This marks a significant increase compared to the $1.33 billion sent during the same period in September 2023, reflecting a $300 million rise year-over-year.
Data from the central bank shows that the monthly daily average remittance inflow stands at $77.8 million. If this trend continues, total remittances for September 2024 are expected to surpass $2.33 billion.
Bangladesh Bank’s spokesperson and Executive Director, Hosne Ara Shikha, noted that remittance inflows have steadily increased since July. She mentioned that expatriates are sending large sums of money, which has helped boost Bangladesh’s foreign exchange reserves and stabilize the previously declining reserves.
In the 2023-24 fiscal year, expatriate Bangladeshis sent $23.92 billion in remittances, the second-highest annual figure on record. The highest inflow was seen during the 2020-21 fiscal year when remittances reached $24.77 billion.
Remittances play a vital role in Bangladesh’s economy, providing much-needed foreign currency that helps stabilize the country’s balance of payments and support household consumption. The country relies heavily on the remittances sent by millions of Bangladeshis working abroad, particularly in the Middle East, the United States, Europe, and Southeast Asia.
Despite some challenges, such as tightening immigration policies in destination countries and fluctuations in global oil prices affecting economies like those in the Gulf region, the remittance flow to Bangladesh remains strong. The government has been encouraging the use of formal channels for remittances by offering incentives such as reduced transfer fees and preferential exchange rates, which may have contributed to the recent uptick in inflows.
If the current trend continues, Bangladesh is on track to meet or exceed remittance targets for the 2024 fiscal year, providing further relief to foreign exchange reserves, which have been under pressure due to rising import costs and global economic uncertainties.
