Bangladesh received US$1.325 billion in workers' remittances during the first 12 days of July, marking a 23.8 percent year-on-year growth compared to the same period last year, according to the latest Bangladesh Bank data. This surge in remittance inflows is expected to provide crucial support to the country's foreign exchange reserves, strengthen external sector stability, and help meet growing import payment requirements.
Significant Growth in Remittances
During the period from July 1 to July 12, 2026, total remittance inflow reached US$1.325 billion, up from US$1.071 billion received during the corresponding period of July 1-12, 2025. The country received $171 million in remittances on July 12 alone, highlighting the robust trend in remittance inflows.
Impact on Foreign Exchange Reserves
The continued rise in remittance inflows is expected to have a positive impact on Bangladesh's foreign exchange reserves. Strong remittance inflows help stabilize the external sector and provide a buffer against economic shocks. This is particularly important as the country faces growing import payment requirements.
Initiatives by Bangladesh Bank
Bangladesh Bank has been taking various initiatives to encourage expatriate Bangladeshis to send their earnings through formal banking channels. These efforts have contributed to the sustained growth in remittance inflows. Formalizing remittance channels not only increases transparency but also ensures that these funds are properly recorded and utilized.
Why This Matters
For Bangladesh, remittances are a critical source of foreign exchange. They play a vital role in supporting the economy, especially during times of economic uncertainty. The significant increase in remittances during the first 12 days of July is a positive sign for the country's economic stability and growth prospects.
