Bangladesh has received an impressive $2 billion in remittances within the first 21 days of December, according to the latest data from Bangladesh Bank. This represents a slight increase from the $1.99 billion sent in December 2023.
The rise in remittances has been largely attributed to expatriates increasingly using legal channels for sending money back home, especially following the political transition in the country. Previously, many Bangladeshis living abroad were hesitant to send money through official systems, fearing that funds might be diverted for money laundering under the previous government.
However, with growing confidence in the country’s banking system, expatriates have started to shift their remittance practices. Husneara Shikha, Executive Director and Spokesperson of Bangladesh Bank, noted that improved regulatory monitoring has accelerated the flow of remittances, ensuring they reach their recipients quickly.
To further encourage the use of formal channels, banks have introduced competitive exchange rates and special incentives for remittance senders. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank Limited, emphasized these incentives as a key factor behind the increase in remittance activity.
In the broader picture, between July and December (up to December 21), expatriates sent a total of $13.14 billion to Bangladesh, signaling a strong recovery in remittance inflows. Bankers are optimistic that December could break records, with remittance earnings potentially reaching new heights.
