Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Remittances sent by expatriate Bangladeshis in January of the current fiscal year dropped by more than 17 per cent to $2.19 billion compared to December 2024.
However, year-on-year, the figure increased by 3.4 per cent, according to data released by the Bangladesh Bank on Sunday.
Despite the monthly decline, remittance inflows during the first seven months of FY25 surged by more than 23 per cent compared to the same period in the previous fiscal year.
The Bangladesh Bank's analysis highlighted that remittance inflows typically rise at the end of a fiscal year (June) and the end of a calendar year (December). Remittances see a significant boost during major religious festivals and special occasions.
A senior central bank official told The Financial Express remittances grow at the end of both fiscal and calendar years as expatriates send more money home during these periods.
He also said the depreciation of the local currency has incentivised expatriates to send more funds so that their families receive a higher amount.
Moreover, the government's 2.5 per cent cash incentive on remittances has further encouraged inflows.
The rise in remittances is helping stabilise the exchange rate and maintain a balance between foreign currency supply and demand.
Six state-owned banks collectively received $511 million in remittances last month. Sonali Bank received $179 million, the highest among state-run banks, while it was $116 million for Bangladesh Krishi Bank.
On the other hand, private commercial banks attracted a total of $1.55 billion, with Islami Bank Bangladesh leading at $282 million, followed by Trust Bank at $161 million.