Remittance reached $24 billion in FY24, marking its highest figure in three years

In the fiscal year 2023-24, Bangladesh's remittances surged to nearly $24 billion, marking a 10.66% increase from the previous year. This growth was fueled by efforts to enhance remittance collection amidst a foreign exchange crunch. The introduction of a flexible exchange rate system in May 2024 helped narrow the gap between formal and informal rates, encouraging higher remittances through banking channels. Policy initiatives and reduced reliance on informal channels like hundi further boosted inflows. Despite challenges in the forex market, including falling reserves and high US dollar outflows, the country's forex situation improved with increased remittance earnings. These earnings provided crucial relief amid economic pressures, reflecting a positive trend following lower remittances in FY22 and FY23.