Bangladesh recorded a historic surge in remittance inflow in March, with $3.29 billion pouring into the country—the highest monthly figure ever, according to data from Bangladesh Bank.

This represents a remarkable 65 per cent year-on-year increase from $1.99 billion in March 2024 and surpasses the previous record of $2.64 billion set just three months earlier in December 2024.

The significant rise is largely attributed to the Eid-ul-Fitr festival, a time when expatriates traditionally send extra funds to support their families.

From July 2024 to March 2025, remittance inflows totalled $21.77 billion, reflecting a 27.6 per cent increase from $17.07 billion in the same period the previous year.

Bankers cite the narrowing of the exchange rate gap between official banking channels and the informal hundi market as a key factor driving this surge.

The interbank exchange rate rose to Tk 122 a US dollar in March, up from Tk 110 in December 2023 and significantly higher than Tk 106 in June 2023 and Tk 93.45 in June 2022.

The steady increase in official rates has made banking channels more attractive to remitters, particularly when combined with the government’s incentive package.

Since January 2022, the government has offered a 2.5 per cent cash incentive on remittances sent through formal channels, up from the previous 2 per cent.

After the political shift in Bangladesh on August 5, 2024, remittance inflow through formal channel surged significantly.

In March, five state-owned banks accounted for an impressive 31.85 per cent of the total remittances, processing $1,051 million.

Another crucial contributor has been the tightening of regulatory oversight on money laundering and illegal transactions.

Therefore, the monthly inflow has exceeded $2 billion from August 2024 through February 2025—a level that was difficult to sustain in previous years.

Islami Bank Bangladesh, however, led with remittance receipts of $515 million in March, followed by those of Bangladesh Krishi Bank amounting $301 million, Janata Bank $239 million, Trust Bank $221 million, BRAC Bank with $214 million, Sonali Bank $200 million, Agrani Bank $167.81 million, City Bank $167.57 million, Rupali Bank $142 million and Bank Asia $121 million.

The high remittance inflow has helped the central bank repay significant foreign overdue payments by the end of December 2024.

Despite these repayments, the country’s foreign currency reserve, according to the International Monetary Fund guidelines, increased to near $21 billion by the end of March.

This improvement in reserve position offers the central bank some breathing space in managing currency volatility and external debt obligations.

The remittance inflow reached $23.9 billion in FY24, up from $21.6 billion in FY23.