Remittance Holds Strong Despite Middle East Crisis

Bangladesh’s remittance inflow continues to show resilience despite growing tensions in the Middle East, where many Bangladeshi migrant workers are employed.

Around 38 percent of the country’s total remittance originates from Gulf nations. The region has been facing heightened instability following attacks involving the United States, Israel and Iran. The situation has created uncertainty for many Bangladeshi expatriates living in the region.

However, remittance inflows to Bangladesh have so far remained strong and even increased compared with previous periods.

According to data from Bangladesh Bank, the country received about $1.92 billion in remittance during the first 11 days of March this year. Of that amount, $183 million arrived on a single day on March 11.

During the same period last year, remittance inflow stood at $1.33 billion, indicating an increase of more than 44 percent this year.

Overall remittance inflow between July and March 11 in the current 2025–26 fiscal year reached $24.37 billion. In the corresponding period of the previous fiscal year, the amount was $19.82 billion, reflecting growth of roughly 23 percent.

The strong inflow has also contributed positively to the country’s foreign exchange reserves. On March 11, reserves rose to $34.29 billion. Under the International Monetary Fund’s BPM-6 accounting method, reserves stood at $29.57 billion.

Bankers say many expatriates are sending additional money home ahead of Eid and for charitable purposes such as zakat.

Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh and managing director of Mutual Trust Bank, said many Bangladeshi workers in the Middle East are concerned about the regional instability but continue to send funds to support their families.

The rising remittance inflow has also influenced the domestic foreign exchange market, with the US dollar gaining slightly in recent days.

Banks bought remittance dollars at around Tk 123.30 on Thursday, compared with about Tk 122.90 earlier in the week. As a result, the dollar rate for import payments has risen above Tk 123.50, according to banking officials involved in currency trading.

Importers say the increase in dollar rates is raising import costs, which could eventually push up prices of consumer goods.

Economists have warned that the Middle East crisis could still create economic pressure if the conflict continues.

Mustafa K Mujeri, former chief economist of Bangladesh Bank, said the government should ensure support for Bangladeshi workers in the Middle East, as the region remains the country’s primary source of remittance.

He noted that reconstruction work in affected countries after the conflict could create new opportunities for overseas employment.

Economists have also advised the central bank to maintain adequate foreign exchange reserves to deal with potential economic shocks linked to the crisis. They suggested diversifying energy sources beyond the Middle East and avoiding immediate fuel price increases that could trigger higher inflation.

According to the central bank’s exchange rate data, the average dollar rate has gradually increased from Tk 122.33 on March 3 to Tk 122.75 in recent days, reflecting growing pressure in the foreign exchange market.