Remittance Inflows Hit $3.42bn in May Surge

Bangladesh received $3.42 billion in remittances in May, marking the sixth straight month in which monthly inflows exceeded the $3 billion mark.

The strong inflow was largely driven by expatriate Bangladeshis sending additional funds home ahead of Eid-ul-Azha to support their families.

According to data released by Bangladesh Bank, remittance inflows in May rose by 15.34 percent compared to the same period last year, reflecting continued growth in overseas earnings despite global economic uncertainties.

The latest inflow has further strengthened the country’s foreign exchange reserves and contributed to robust remittance performance during the current fiscal year. During the first 11 months of FY2025–26 (July–May), expatriates sent home $32.75 billion, up from $27.5 billion during the same period of the previous fiscal year, registering a 19 percent year-on-year increase.

Central bank officials attributed the sustained growth to government incentives for sending money through formal banking channels, growing confidence in the banking system, and increased transfers linked to Eid preparations.

“The positive trend in remittance inflows has continued due to incentives for legal transfers, improved trust in the banking sector, and higher remittances sent by expatriates ahead of Eid,” officials said.

The country has maintained strong remittance momentum in recent months. In April, remittance inflows stood at $3.22 billion, while March recorded a historic high of $3.75 billion — the highest monthly remittance inflow on record.

Earlier, Bangladesh received $3.22 billion in December 2025, followed by $3.17 billion in January 2026 and $3.02 billion in February 2026, indicating a consistent upward trend throughout the fiscal year.

Economists say rising remittance earnings are playing a crucial role in easing pressure on foreign exchange reserves, stabilising the currency market and strengthening the country’s external sector.

Bangladesh’s gross foreign exchange reserves stood at $34.77 billion as of Monday, while reserves calculated under the IMF’s BPM6 standard were $30.11 billion, according to Bangladesh Bank data.

With overseas Bangladeshis continuing to use formal channels for money transfers, policymakers expect remittance inflows to remain strong in the coming months.