Surge in Remittances Ahead of National Elections

In a striking development for the nation’s economy, Bangladesh has witnessed a remarkable surge in inward remittances during the final weeks leading up to the national election. According to the latest data released by Bangladesh Bank, the country received $2.94 billion in the first 28 days of January 2026 alone. This figure represents a staggering 50.6% increase compared to the same period last year, when inflows stood at $1.95 billion.

Election Spending Drives Record Inflows

Financial experts and senior banking officials suggest that this sudden spike deviates from traditional seasonal trends, such as the surges typically seen before the Eid festivals. Instead, the current momentum is largely attributed to the upcoming general elections.

It is understood that significant funds are being funnelled into the country to cover campaign expenditures and electoral logistics. Sources indicate that supporters and expatriates are active in fundraising abroad, with these capital injections entering the domestic economy under the guise of personal remittances. This trend is expected to persist until the conclusion of the polling process.

Comparative Growth in Fiscal Year 2025–26

The broader economic picture remains robust, with the current fiscal year showing a healthy upward trajectory in foreign earnings.

The total remittance for the calendar year 2025 reached $32.82 billion, a figure nearly equivalent to the central bank’s current total foreign exchange reserves.

Stabilisation of Reserves and Exchange Rates

The influx of dollars has played a pivotal role in easing the liquidity crisis that previously plagued the banking sector. During the height of the dollar shortage, the exchange rate spiked to as high as 128 BDT per USD. However, with the consistent arrival of expatriate income, the market has stabilised, with the greenback now trading between 122 and 123 BDT.

Furthermore, the national reserve position has shown significant recovery. From a historic peak of $48 billion in 2021, reserves plummeted during subsequent years of political and economic turmoil, sitting at $25.58 billion during the change of government in August 2024. Under the current management, the “war chest” of the central bank has climbed back to $32.26 billion, providing the government with a much-needed buffer against external shocks.