Bangladesh has reached a historic milestone in inward remittances, recording USD 17.17 billion during the first six months and seven days of the 2025–26 fiscal year.

This surge represents a significant nearly 20% increase compared to the USD 14.31 billion collected during the same period in the previous fiscal year, reflecting a robust growth of USD 2.86 billion, says UNB in a report published on Tuesday (January 13).

This momentum follows a landmark FY25, where annual remittances surpassed the USD 30 billion mark for the first time.

The current upward trend is providing a vital cushion for the country’s foreign exchange reserves, which now stand at approximately USD 33 billion under traditional calculations, offering the government essential fiscal flexibility to manage import costs and external debt.

The sustained growth is attributed to several structural and policy-driven shifts, most notably a restored confidence in formal banking channels following the political transitions of late 2024.

Bangladesh Bank Spokesperson Arif Hossain Khan noted that expatriates are increasingly shunning the illegal "hundi" system in favor of official channels due to improved transparency and a sense of economic patriotism.

Furthermore, the stabilization of the taka against the US dollar under a market-based exchange rate has eliminated speculative delays in money transfers.

Government support, including a consistent 2.5% cash incentive and the expansion of digital fintech solutions, has also made remitting money faster and more attractive for migrant workers in the Middle East and Southeast Asia.

Monthly data reveals a consistent climb in inflows, starting at USD 2.47 billion in July and peaking at a substantial USD 3.22 billion in December.

Financial experts, including Professor Mustafizur Rahman of the Centre for Policy Dialogue (CPD), highlight that this surge is effectively offsetting recent weaknesses in the export sector.

Similarly, Syed Mahbubur Rahman, CEO of Mutual Trust Bank, emphasized that the normalization of the exchange market has made illegal channels financially disadvantageous for workers.

As these record-breaking inflows continue to drive national consumption and GDP growth, policymakers are reportedly reconsidering the necessity of high-conditionality international loans, relying instead on the resilience of the country's overseas earners.