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Bangladesh received $2.42 billion in remittances in August 2025, an 8.9-percent increase from $2.22 billion in August 2024, reflecting a steady growth in migrant workers' contributions.
According to Bangladesh Bank (BB) data, cumulative inflows reached over $4.9 billion during July-August in the fiscal year 26, up from more than $4.14 billion in the same period last fiscal year -- an 18.4 per cent increase.
The upward trend offers a cushion for the country's reserves, though sustaining the momentum will depend on exchange rate policies and curbing informal remittance channels, bank insiders and analysts say.
The country received a total of over $30.32 billion in remittances in FY25, the highest fiscal remittance collection in Bangladesh's history, despite multi-pronged macroeconomic strains and a foreign exchange shortage.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank (MTB) PLC, said the recent rise in remittance inflows is a positive sign for the economy, as it strengthens the country's foreign exchange reserves.
However, he noted that despite the growth, remittance inflows had shown a declining trend in recent months, which needs to be addressed to ensure sustained growth.
Mr Rahman further highlighted that informal channels, particularly hundi, continue to act as a bottleneck. He stressed the need for stronger incentives, compliance measures, and awareness campaigns to encourage migrants to use formal banking channels.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said, "The strong remittance growth in the first two months of FY26 is encouraging, particularly amid ongoing pressures on Bangladesh's balance of payments."
He added that migrant workers continue to demonstrate resilience, and their contributions remain vital for foreign exchange stability. Stricter governance in the banking sector and reduction of illicit cross-border capital flows have also contributed to the rise in formal remittances.
However, sustaining this momentum will require consistent policy support -- especially competitive exchange rates, streamlined banking services, and curbing informal remittance channels, he stated.
"The priority should be to make remittance channels more accessible, transparent, and cost-effective," Dr Reaz added.
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