Bangladesh received a record $2.94 billion in remittances in the first 26 days of March, driven by Eid-ul-Fitr, one of the biggest Muslim festivals, and a crackdown on illegal money transfer channels.

The inflow represents an 82.46% increase compared to the same period last year, with remittances expected to exceed $3 billion by the end of the month, marking a historic high for a single month.

Industry experts attribute the surge to both Eid-related financial support from overseas workers and a decline in hundi and hawala transactions—informal cross-border money transfer methods—following stricter enforcement against illegal operators.

“The government’s crackdown on hundi and hawala networks after the political transition has pushed more remittances through formal banking channels,” said Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank.

Remittances are Bangladesh’s vital source of foreign exchange, helping to stabilize the economy and support millions of families. The record-breaking inflows could ease pressure on the country’s foreign reserves and support economic growth.