Remittance Inflows Surge In May

Bangladesh received US$315 million in remittances during the first three days of May, reflecting a strong continuation of foreign currency inflows from expatriate workers and a notable year-on-year increase.

According to information provided on Monday by Bangladesh Bank spokesperson Arif Hossain Khan, the country recorded remittance earnings of US$315 million between 1 and 3 May, equivalent to an average daily inflow of US$105 million.

During the same period last year, Bangladesh had received only US$88 million, indicating a sharp rise in remittance earnings over the past 12 months. The increase highlights continued momentum in inward transfers, which remain a critical source of foreign exchange for the country amid efforts to stabilise reserves and support import payments.

From July to 3 May of the current fiscal year, total remittance inflows reached US$29.648 billion. This marks a 20.40 per cent increase compared with the corresponding period of the previous fiscal year, underscoring stronger formal channel usage by overseas Bangladeshis.

The upward trend has been particularly visible in recent months. In April, remittance inflows stood at US$3.1273 billion, while March recorded US$3.75505 billion, the highest monthly remittance figure in Bangladesh’s history. The March performance set a new benchmark for a single month, driven by higher transfers ahead of Eid festivities and improved incentives for sending money through official banking channels.

In earlier months, Bangladesh received US$3.02076 billion in February and US$3.17094 billion in January, maintaining a steady monthly average above the US$3 billion mark.

Economists have noted that higher remittance earnings can provide significant support to Bangladesh’s external sector by strengthening foreign exchange reserves, easing pressure on the exchange rate, and improving the country’s balance of payments position. The government has also maintained cash incentives for remittance sent through legal channels, a policy widely credited with helping divert flows away from informal systems.

Bangladesh has increasingly relied on remittances alongside export earnings, particularly from the ready-made garments sector, to manage foreign currency demand. Sustained growth in remittance inflows is therefore being closely monitored by policymakers as a key indicator of economic resilience.

The latest figures suggest Bangladesh has entered May with continued strength in remittance earnings, following several consecutive months of record or near-record inflows.