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Rising remittance inflows fetched Bangladesh US$2.97 billion in May, the second-highest monthly receipt in its history, giving a much-needed respite to the economy facing multipronged strains amid forex dearth in recent times.
In terms of growth, the country saw a 31.71-percent year-on-year increase from $2.26 billion recorded in May 2024, according to data released Sunday by the Bangladesh Bank (BB).
The May figure of $2.97 billion was the second-highest one after March last when the Bangladeshi citizens working abroad sent $3.30 billion back home.
According to the official data, the country received a total of $27.51 billion in remittances during the first 11 months of the current fiscal year-an increase of 28.69 per cent compared to the $21.37 billion received in the same period of the previous fiscal year.
The report shows remittance inflows having risen by $6.13 billion year on year, reflecting a significant boost to earnings sent by expatriates.
People familiar with the developments say the surge in remittances was primarily driven by increased inflows ahead of the Eid festival. This seasonal boost is reflected in the data, with remittance rising by 7.91 per cent in May compared to April this year.
Seeking anonymity, a BB official says remittance inflow normally goes up before major festivals like Eid. As Eid-ul-Azha -- the second largest festival for this Muslim-majority country -- is knocking at the door, the inflow of foreign currencies starts rising, which is reflected in the remittance data.
The central banker says the banking regulator recently launched a market-centric exchange regime, which depreciates local currency against the American greenback further and it also helps attract more remittance.
"These are the two major factors contributing to the remittance buildup here," the BB official told the FE, adding that the rising inflow of foreign currencies will certainly bolster the country's foreign-exchange reserves.
According to the statistics, the forex reserves now stand at $25.77 billion as per the BB calculations while the reserve size is $20.50 billion in accordance with the International Monetary Fund arithmetic as on June 1st, 2025.
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