Bangladesh received a record $32.8 billion in remittances in 2025, the highest annual inflow in the country’s history, according to data released by Bangladesh Bank. Economists attribute the surge to increased use of formal banking channels by expatriates and a sharp decline in informal money transfers following the political transition in August.
The remittance inflow was 22 percent higher than the $26.88 billion recorded in 2024, providing a major boost to Bangladesh’s fragile external balance and easing pressure on foreign exchange reserves.
In December alone, expatriates sent home $3.22 billion, marking the highest monthly remittance inflow in nine months and representing a 22 percent year-on-year increase.
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The steady inflow of foreign currency helped lift the country’s gross foreign exchange reserves to $33.18 billion on December 30, up from about $25 billion a year earlier, central bank data showed.
“Remittances have been a key driver behind the recent increase in reserves, reflecting an improvement in the external sector,” said Mohammed Nurul Amin, former chairman of the Association of Bankers Bangladesh (ABB). He added that rising reserves strengthen market confidence and help attract foreign investment.
Following the fall of the previous government, remittance inflows have increased consistently each month. Previously, demand for hundi, an illegal cross-border money transfer system, had surged amid reports of large-scale capital flight. That trend has since reversed under the interim government.
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During the July–December period, Bangladesh received $16.26 billion in remittances, up 18.1 percent from the same period a year earlier.
Industry insiders credited the growth to government incentives, aggressive efforts by banks to attract expatriate funds, and the reduced use of the hundi system. Currently, remittance senders receive a 2.5 percent cash incentive from the government.
Amin, also a former chairman of Global Islami Bank, said incentives played a crucial role in encouraging expatriates to use formal channels. He also cited improved public confidence and a perceived reduction in corruption following the political changeover.
Overseas employment has also increased, with 1.12 million Bangladeshis leaving the country for jobs abroad between January and December 28. Saudi Arabia remained the top destination, followed by Qatar and Singapore, according to official data.
Former World Bank economist Zahid Hussain said higher remittance inflows have helped stabilize the exchange rate by boosting reserves and reducing reliance on informal money transfers.
In December, Islami Bank Bangladesh topped the list of remittance-receiving banks with $671 million, followed by Bangladesh Krishi Bank, Janata Bank, and BRAC Bank.
With easing demand for US dollars, the central bank has purchased over $3 billion so far in the current fiscal year, reinforcing efforts to rebuild foreign exchange reserves.
