Record Remittance Inflows Boost Bangladesh’s Foreign Exchange Reserves

Bangladesh recorded an unprecedented surge in remittance inflows in March, with expatriates sending nearly $4 billion in a single month—the highest ever recorded in the country’s history. The milestone underscores the growing importance of overseas earnings in stabilising the national economy and strengthening foreign exchange reserves.

According to Bangladesh Bank, total remittance inflows in March reached $3.755 billion. At the prevailing exchange rate of approximately Tk122.75 per US dollar, this equates to more than Tk460 billion, marking a historic high for monthly inward remittances.

The announcement was confirmed on Wednesday (1 April) by Arif Hossain Khan, Executive Director and spokesperson of the central bank. The surge is widely attributed to increased financial transfers by expatriate Bangladeshis ahead of the holy month of Ramadan and the festival of Eid al-Fitr, periods traditionally associated with higher household expenditure.

Industry stakeholders suggest that migrant workers tend to remit more funds during festive seasons to support their families’ additional expenses, thereby creating seasonal spikes in remittance inflows. This year’s substantial increase has had a notably positive impact on the country’s foreign currency reserves, providing greater stability to the external sector.

A comparison with previous months highlights the scale of the growth. In February, remittances stood at $3.02 billion, whilst in March of the previous year, inflows were recorded at $3.30 billion. This represents a year-on-year increase of approximately 14%, reflecting both improved formal remittance channels and stronger economic engagement by overseas workers.

The cumulative remittance figures for the current 2025–26 fiscal year further reinforce this upward trend. Between July and March, total remittance inflows reached $26.21 billion, representing a 20% increase compared with $21.78 billion during the same period of the previous fiscal year. This sustained growth signals a strengthening of one of Bangladesh’s most vital sources of foreign exchange earnings.

The table below summarises key remittance and reserve indicators:

The rise in remittance inflows has also contributed to a modest recovery in foreign exchange reserves. Despite ongoing payments for imports and external obligations, reserves stood at $34.25 billion at the close of business on 1 April. Under the International Monetary Fund’s BPM6 accounting framework, which provides a more standardised measure, reserves were calculated at $29.61 billion.

Economists note that sustained remittance growth not only supports reserve accumulation but also helps stabilise the exchange rate and finance the country’s trade deficit. Furthermore, increased reliance on formal banking channels for remittance transfers has improved transparency and efficiency within the financial system.

Looking ahead, analysts expect remittance inflows to remain strong in the short term, particularly during festive periods. However, maintaining this momentum will depend on global labour market conditions, exchange rate stability, and continued policy support to encourage expatriates to remit through official channels.

In summary, March’s record-breaking remittance inflow represents a significant boost for Bangladesh’s external sector. It highlights the resilience and contribution of the country’s overseas workforce, whilst reinforcing the critical role remittances play in sustaining economic stability and supporting national development.