Remittance hit $2.47bn as monthly inflow jumps 29% year-on-year

Inward remittance rises sharply from $1.91 billion a year ago, when political unrest disrupted overseas transfers

Bangladesh has raked in $2.47 billion in remittances through formal banking channels in July 2025, marking a 29.31 percent year-on-year rise, according to Bangladesh Bank data published on Sunday.

In July 2024, remittance stood at $1.91 billion, a period when the student-led July Uprising turned violent, prompting calls from some groups urging expatriates to suspend money transfers to protest against the government.

The unrest coincided with a visible decline in inflows that month.

Remittance began to climb from the following month, after the fall of the Awami League government in August. Inflows reached $2.22 billion in that month and have remained consistently above $2 billion every month since.

Economist Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, attributed the surge to a sharp drop in Hundi operations.

“There hasn’t been a significant rise in expatriate income or employment,” he said.

“What’s changed is that many of those involved in Hundi were close to the previous regime. After the regime change, some are now in jail, others are on the run. With informal channels weakened, banking transactions are up.”

A senior treasury official at a private bank told bdnews24.com that rising remittances and export earnings have increased dollar supply, exerting downward pressure on the exchange rate. To prevent a sharp fall in the dollar’s value, the central bank has resumed buying dollars from commercial banks.

On Thursday, Bangladesh Bank Governor Ahsan H Mansur said the central bank had already bought around $500 million, injecting nearly Tk 600 billion into the banking system and boosting market liquidity.

He confirmed that further dollar purchases would be made “as needed”.

Earlier this year, Bangladesh Bank allowed the exchange rate to be determined by market forces. In May, the governor had said the dollar market was stable and that significant fluctuations were unlikely even under a floating regime.

Pubali Bank Managing Director Mohammad Ali said confidence in the formal market was increasing due to this transparency, helping boost banking channel inflows.

In fiscal year 2024–25, Bangladesh received a record $30.32 billion in remittances, up 26.8 percent from $23.91 billion the previous year. The previous highest was $24.77 billion in 2020–21.

According to July data, Islami Bank received the highest amount at $533.7 million, followed by Agrani Bank with $246.7 million, and BRAC Bank with $178.1 million.