Remittance inflow up 35.7% in first half of March ahead of Eid

Remittance inflows have increased by 35.7% in the first half of March, ahead of Eid, with expatriate Bangladeshis sending $2.20 billion in the first 14 days of the month.

During the same period in 2025, remittances stood at $1.62 billion, confirmed the central bank’s spokesperson and Executive Director Arief Hossain Khan today (15 March).

A senior official of a private bank told The Business Standard that the rise in remittances is mainly due to the upcoming Eid festival, as expatriates typically send more money home during this period.

However, he noted that the flow may slow down after Eid, which is a usual trend.

He also warned that the ongoing Iran-Israel conflict could affect remittance inflows from the Middle East after Eid. If migrant workers in the region face disruptions in their jobs due to the conflict, remittance sent through banking channels may decline.

A deputy managing director of another private bank said expatriates were receiving between Tk121.70 and Tk121.75 per dollar today, while LC settlements were made at Tk121.20 per dollar.

The Middle East conflict escalated on 28 February this year when Israel and the United States jointly attacked Iran. In response, Iran has launched a series of missile strikes targeting Israel and countries in the Arab region that host US military bases.

Iran has also restricted vessel movements through the Strait of Hormuz without its approval, contributing to a rise in global fuel prices.

Meanwhile, economists recently held a meeting with newly appointed Bangladesh Bank governor last week. According to sources at the meeting, the central bank signalled that it would try to maintain foreign exchange reserves.

This has created a market signal that prompted banks to buy remittance dollars at higher rates.

A senior official of a private bank said that if new investments increase in the coming months, demand for opening letters of credit (LCs) will rise, which would in turn push up demand for dollars in the banking sector. As a result, banks are currently purchasing remittance dollars at higher rates.

https://www.tbsnews.net/economy/remittance-inflow-357-first-half-march-ahead-eid-1387681