Remittance inflows to Bangladesh exceeded $2.5 billion in February, as expatriates sent additional funds ahead of Ramadan to support their families.

Data from Bangladesh Bank revealed that remittances reached $2.52 billion, up from $2.17 billion in the same month of 2024 and $2.18 billion in January this year.

Bankers have attributed the rise to seasonal factors, with expatriates traditionally sending more money home during the Ramadan period, which began on March 2.

The influx is expected to grow further as Eid-ul-Fitr approaches, with remittances typically peaking during major religious festivals.

From July 2024 to February 2025, remittance inflows totaled $18.5 billion, marking a 23.8 per cent increase from $14.95 billion in the same period of the previous financial year.

February was also the seventh consecutive month in which remittances remained above $2 billion.

The first half of the 2024-25 financial year saw a record-high remittance inflow of $13.77 billion, with December alone contributing $2.63 billion.

Moreover, the rise in the dollar exchange rate and a reduction in money laundering through illegal channels such as hundi also contributed to the surge in remittance.

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

The high remittance inflows have helped the central bank repay significant foreign overdue payments by the end of December.

Despite these repayments, the country’s foreign currency reserve, according to the International Monetary Fund guidelines, increased to near $21 billion on February 27.

The interbank dollar rate increased to Tk 122 in January from Tk 110 in December 2023.

In addition to the rate, the remitters enjoyed government’s incentive.

The government and the central bank have taken various measures to increase remittance inflow through formal channels, BB officials said.

On January 1, 2022, the government increased cash incentive on remittances to 2.5 per cent from 2 per cent to encourage migrants to send more money through the banking channel.

The dollar rate was Tk 110 in December 2023, Tk 99 in December 2022 and Tk 84.8 in July 2021.

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