Bangladesh remittance and economic stability

Bangladesh has seen a significant rise in remittance inflows, which contributed to increased economic stability and a strengthening local currency.

Between March and August 2026, remittance inflows grew by 13.1 percent, totaling $1.894 billion. Major contributors to these funds included Saudi Arabia, the United Kingdom, the United Arab Emirates, the United States, and Malaysia. Growth was particularly notable in August, which saw a 22.3 percent increase.

By September 2026, total remittances for the 2026-27 fiscal year reached $7.702 billion, a 13.8 percent increase over the previous year. This influx helped raise foreign exchange reserves to $36.44 billion as of September 8, up from $24.86 billion in September 2024. Consequently, the Bangladesh Taka strengthened against the US Dollar to its highest level in five and a half years, moving from 123.95 BDT to 123 BDT per dollar.

To further support this recovery and reduce demand for foreign currency, Bangladesh Bank has introduced a new framework allowing foreign banks to settle eligible trade payments in Taka. Under this system, local banks can maintain Taka accounts for foreign correspondent banks without requiring initial funding in convertible currencies. Instead, accounts can be funded through Taka payments from Bangladeshi importers to be used for local exporters. This mechanism is expected to lower import costs for essential goods, including fuel, food, and industrial raw materials.