Remittances Drop by 17% in January Compared to December

Economic Desk

In January 2025, remittances sent by expatriate Bangladeshis decreased by more than 17% to $2.19 billion compared to December 2024. However, on a year-on-year (YoY) basis, remittance inflows increased by 3.4%, according to data released by the Bangladesh Bank on Sunday.

Despite the monthly decline, remittance inflows in the first seven months of the 2025 fiscal year grew by over 23% compared to the same period in the previous year.

The central bank’s analysis indicates that remittance inflows typically rise at the end of the fiscal year (June) and the calendar year (December). Significant religious festivals and special occasions also contribute to increased remittance flows.

A senior central bank official stated, “Expatriates tend to send additional funds towards the end of the fiscal and calendar years, leading to a surge in remittances.”

He added, “The depreciation of the local currency has incentivized expatriates to send more money, allowing their families to receive larger amounts.” Additionally, the government’s 2.5% cash incentive has helped boost remittance inflows.

The increase in remittances has contributed to maintaining stability in the foreign exchange market and balancing the supply and demand of currency.

Meanwhile, last month, six state-owned banks received a total of $511 million in remittances. Among them, Sonali Bank led with $179 million, followed by Bangladesh Krishi Bank with $116 million.

On the other hand, private commercial banks received a total of $1.55 billion in remittances, with Islami Bank Bangladesh topping the list at $282 million and Trust Bank receiving $161 million.