Bangladesh, for the first time, is set to cross US$3.0 billion in remittance earnings in March, as $2.945 billion has already been fetched as of March 26.
According to Bangladesh Bank sources, which compile figures from all banks, on the last banking day on Thursday (March 27), remittances will cross $3.0 billion.
The previous monthly highest record was $2.639 billion, set in December 2024.
People familiar with the development at the central bank told FE that the surge is primarily driven by remittances ahead of Eid-ul-Fitr, the largest Muslim festival.
“This (remittances) will cross $3.0 billion this month, and it will be a record that never happened in the past,” said a senior central bank official to the FE on Thursday.
The central bank officials said that the informal money transfer system, commonly known as “hundi”, is now rapidly disappearing.
They linked the rise in formal remittance inflows to recent political changes, suggesting that some individuals previously engaged in “crony capitalism” have left the country.
“In the past, these individuals used banks to siphon off funds.”
Crony capitalists refer to individuals with close ties to political power who have benefitted from preferential treatment in financial transactions.
Central bankers highlighted the role of mobile financial services and new technologies in facilitating remittance inflows.
The increase in remittances has significant implications for Bangladesh’s economy, helping to stabilise foreign exchange reserves and support the forex market.
jasimharoon@yahoo.com