Remittance inflow hits 11-month low

Bangladesh's remittance inflow hit an 11-month low of $2.76 billion in September despite posting a 3 percent year-on-year rise.

In October last year, the figure stood at $2.56 billion.

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Meanwhile, September's inflow extended a sluggish run, remaining below $3 billion for the fourth consecutive month, according to the latest Bangladesh Bank data.

The figure was about 7 percent lower than August's $2.96 billion, when inflows rose 22 percent year-on-year. The August figure was itself 3.77 percent higher than that of July.

September's growth was therefore sharply slower than that of the previous month.

Over the first quarter of FY2026-27 (July to September), remittances totalled $8.59 billion, a 13.3 percent rise from $7.58 billion a year earlier. The quarterly performance suggests that the underlying trend is not weak, although monthly momentum has softened.

Industry insiders blame the war in the Middle East for keeping monthly inflows below $3 billion.

Inflows have remained below the expected level since May. The Middle East is home to a large share of Bangladeshi migrant workers, so disruptions there can affect incomes, employment and the way money is sent.

The slowdown matters because remittances are one of the main sources of foreign currency. 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.

Bankers and exchange house operators say the pace of recovery will depend on stability in Middle Eastern labour markets and on how much money moves through formal rather than informal channels.