Remittance Remains Positive in November Despite Slight Decline

Bangladesh continues to experience a positive trend in remittance inflows, with November 2024 recording nearly $2.2 billion, slightly lower than October’s $2.4 billion but consistent with the rising trajectory since the beginning of the fiscal year. According to updated data from Bangladesh Bank released on December 1, expatriates sent $2.199 billion in November, averaging over $73.3 million daily. State-owned banks contributed $824.2 million, specialized banks like Krishi Bank accounted for $145.9 million, private banks facilitated $1.223 billion, and $6.28 million came via foreign banks. However, nine banks, including Bangladesh Development Bank, Rajshahi Krishi Unnayan Bank, and several private and foreign entities, reported no remittance inflow during the month. The fiscal year began with $1.91 billion in July, followed by $2.22 billion in August, $2.40 billion in September, and $2.4 billion in October. Over five months, the country received $11.14 billion, marking a 30% year-on-year growth. Historically, the highest monthly remittance of $2.6 billion was recorded in July 2020. The recent decline in November compared to prior months reflects the residual impact of political instability, including internet disruptions and banking shutdowns during the quota reform protests in July, which initially hampered remittance inflows. Following a governmental transition in August under Dr. Muhammad Yunus, remittance flows stabilized, supported by Bangladesh Bank's measures to encourage legal remittance channels amid ongoing foreign exchange challenges. While remittance peaked at $24.78 billion in FY2020-21, the central bank’s efforts to boost inflows appear to have yielded positive results, helping to mitigate a prolonged foreign reserve crisis exacerbated by high import costs and moderate export growth since the Russia-Ukraine war.