Remittances Surge Before Vote

Remittance inflows to Bangladesh have risen sharply in the run-up to the national election, with expatriate Bangladeshis sending home an average of about Tk 15.5 billion per day this month. The upward trend in remittances, which began roughly two months ago, has continued into the current month, reflecting heightened financial activity linked to the election period as well as broader improvements in formal remittance channels.

According to the latest data released by Bangladesh Bank, expatriates remitted USD 1.135 billion during the first nine days of the month. In local currency terms, this is equivalent to approximately Tk 139.6 billion. By comparison, during the first nine days of February last year, remittance inflows stood at USD 866 million. This represents a year-on-year increase of around 32.3 per cent over the same period, underlining the scale of the recent acceleration.

The momentum has been building since the turn of the year. In January, remittances totalled USD 3.17 billion, while December recorded USD 3.22 billion. In the preceding five months, monthly inflows had remained below USD 3 billion, indicating that the recent performance marks a notable rebound. Bank officials note that remittance inflows typically rise ahead of the two Eid festivals, when migrant workers send additional funds to support family spending. However, the current surge is being widely attributed to election-related factors, including increased household expenses, community donations, and fundraising activities abroad by political candidates and supporters. Countries with large Bangladeshi migrant communities—particularly in the Middle East, Europe and North America—have been the principal sources of the increased inflows.

Recent Remittance Trends

Bangladesh Bank’s annual figures indicate that total remittances in 2025 amounted to USD 32.82 billion, a sum broadly comparable to the country’s foreign exchange reserves held at the central bank. The robust inflow of remittances during that year helped ease pressure on the foreign exchange market, limiting dollar shortages and contributing to greater currency stability. Throughout the year, the central bank purchased foreign currency from commercial banks to smooth market volatility and rebuild reserves, strengthening the country’s external buffer and supporting import financing and external debt servicing.

Despite the surge in remittance inflows, access to funds has been temporarily constrained by election-related measures. Commercial banks have remained closed for four consecutive days around polling, preventing beneficiaries from withdrawing cash over the counter. Customers with ATM cards, however, have been able to access funds through automated teller machines, with daily withdrawal limits of up to Tk 200,000 depending on the bank. Inter-bank transfers have been suspended during the election period as part of precautionary measures to ensure financial stability and security. Mobile financial services have also been curtailed, meaning that platforms commonly used for cashing out remittances are currently unavailable.

Even with these short-term restrictions, the sustained rise in remittances has provided a timely boost to Bangladesh’s external accounts. Policymakers and bankers alike view the trend as a positive signal for foreign exchange liquidity, household consumption and overall macroeconomic stability during a politically sensitive period.