Bangladesh remittances hit record $3.75bn amid economic concerns

Bangladesh recorded its highest-ever monthly remittance inflow in March, reaching $3.75 billion and offering temporary relief to the economy as concerns grow over the impact of the ongoing Iran war.

The figure marks a 14 percent increase from $3.29 billion in March last year, driven largely by higher transfers from expatriates ahead of Eid-ul-Fitr, which was celebrated on March 21.

According to data from Bangladesh Bank, total remittances for the July–March period of the current fiscal year rose 20 percent year-on-year to $26.20 billion. Remittances remain a key source of foreign currency, helping the country manage external payments.

However, the strong inflow comes amid rising concerns about future trends as the conflict involving Iran spreads across the Gulf region, where many Bangladeshi migrant workers are employed.

The war has already disrupted travel, with nearly 800 Middle East-bound flights from Bangladesh cancelled since February 28, affecting many workers heading abroad.

In a recent report, the Asian Development Bank warned that Bangladesh and other South Asian countries could see a decline in remittances if the conflict weakens labour demand and reduces migrant incomes in the Middle East.

Nearly half of Bangladesh’s annual remittances—over $30 billion—come from Gulf countries. Nations such as Saudi Arabia, Oman, Qatar, United Arab Emirates and Kuwait together account for the majority of overseas employment for Bangladeshi workers.

Bankers and analysts say the March surge was also supported by improved political stability and a stronger US dollar following a slight depreciation of the taka.

Meanwhile, more than one million Bangladeshi workers went abroad for jobs between July and February of the current fiscal year, a 15 percent increase compared to the same period last year, according to official figures.