Remittances Sent by Expatriate Bangladeshis Drop by 17% in January

Staff Reporter

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

Despite the monthly decline, remittance inflows during the first seven months of FY25 have surged by more than 23% compared to the same period last year.

According to Bangladesh Bank’s analysis, remittance inflows typically rise at the end of the fiscal year (June) and the end of the calendar year (December). Major religious festivals and special occasions contribute significantly to the rise in remittances.

A senior central bank official stated, “Expatriates send more money home towards the end of both the fiscal and calendar years, which leads to an increase in remittances.”

He also mentioned, “The depreciation of the local currency has incentivized expatriates to send more money so that their families receive a larger amount.” Additionally, the government’s 2.5% cash incentive has further boosted the remittance inflows.

The increase in remittances is helping to stabilize the foreign exchange market and maintain a balance between supply and demand for foreign currency.

Meanwhile, six state-owned banks collectively received $511 million in remittances last month. Among them, Sonali Bank received $179 million, the highest among state-run banks, while Bangladesh Krishi Bank received $116 million.

On the other hand, private commercial banks attracted a total of $1.55 billion in remittances, with Islami Bank Bangladesh leading at $282 million, followed by Trust Bank with $161 million.