Bangladesh recorded its highest-ever monthly remittance inflow of $2.64 billion in December, boosting foreign exchange reserves amid economic pressures.

The latest figure, reported by the Bangladesh Bank (BB), marks a sharp improvement attributed to regulatory reforms and stricter monitoring.

In the first half of FY25, remittance receipts totaled $13.78 billion, nearly 60% of FY24’s annual record of $23.91 billion. December’s inflow surpassed the previous high of $2.59 billion in July 2020 and $2.54 billion in June 2024.

BB Executive Director Husne Ara Shikha credited the rise to tightened measures against Hundi operations and narrowing exchange-rate gaps between formal and informal markets. These steps, coupled with the depreciation of the taka—currently allowing remitters up to Tk 123 per dollar—helped attract more remittances.

Economist Dr. M Masrur Reaz noted that regulatory crackdowns dismantled grey markets linked to controversial business entities, further stabilizing the forex market. Bankers like MTB CEO Syed Mahbubur Rahman acknowledged increased competition among banks to offer attractive rates in compliance with BB policies.

The central bank’s introduction of the crawling peg exchange system and intensified oversight following a July-August regime change have also contributed to stemming forex outflows and boosting formal remittance channels. Analysts anticipate continued growth in remittance inflows.