Remittance inflow hits 11-month low in September

Bangladesh’s remittance inflow fell to an 11-month low of $2.76 billion in September, although it was 3 percent higher than the $2.68 billion received in the same month last year, according to Bangladesh Bank data.

The September inflow was lower than August’s $2.96 billion, which was 22 percent higher year-on-year. Annual growth therefore slowed sharply last month.

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Remittance inflow stood above $3 billion for six months till May this year before falling below the threshold.

Over the first quarter of the ongoing fiscal year 2026-2027 (FY27), remittances totalled $8.59 billion, up 13.3 percent from $7.58 billion a year earlier.

The quarterly performance suggests the underlying trend is not weak, although monthly momentum has softened.

Over the first quarter of the ongoing FY27, remittances totalled $8.59 billion, up 13.3 percent from $7.58 billion a year earlier

Industry insiders attribute the recent decline to the war in the Middle East, which is home to a large share of Bangladeshi migrant workers, saying disruptions there affect incomes, employment and expatriates’ ability to send money home.

Arief Hossain Khan, executive director and spokesperson of Bangladesh Bank, told The Daily Star that the cost of living in the region had risen significantly because of recent conflicts and heightened tensions.

“Remitters are facing much higher expenses than before, which is why growth has slowed somewhat. Nevertheless, our efforts are continuing,” he said.

He added that the central bank has recently informed banks that it will no longer provide support for collecting dollars to meet import bills and other obligations, and that they must arrange their own.

“As a result, the banks are now also taking initiatives to do so,” he said.

In its quarterly monetary policy statement, published on Wednesday, the central bank identified higher global energy prices, the ongoing Middle East conflict and the recent fuel price hike as key challenges.

Bankers said remittances could provide crucial support for external payments, including import bills and foreign loan repayments, at a time when export earnings are weakening and import costs remain high.

Meanwhile, the number of Bangladeshis leaving for overseas jobs fell to a five-year low in FY26.

Some 9.7 lakh people went abroad for work during the year, down 5 percent from FY25, according to the Bureau of Manpower, Employment and Training.

Departures have declined for two years, and the weak outlook for the current fiscal year has raised concerns about remittances.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said Middle East tensions had slowed remittances while also pushing up global energy prices.

She said there was little chance of the crisis ending soon, so the country would have to pay more for energy and would need more foreign exchange.

Export earnings had improved but remained volatile, making remittances one of the main sources of forex, she also noted.

She urged the government to diversify remittance sources and reduce dependence on the Middle East, including by sending more workers to Malaysia, Singapore and other countries.