In December 2024, Bangladesh experienced a notable increase in remittance inflows, with total remittances from July to November reaching $11.14 billion, a 26.44% rise compared to $8.81 billion in the previous fiscal year. This surge is attributed to the growing confidence of expatriates in the banking system and the seasonal uptick in remittance activity typically seen at year-end [4a057fbd].
As of December 13, 2024, the dollar rate for Letter of Credit (LC) settlements has risen to Tk125, with remittance dollar rates peaking at Tk125.60, nearing an all-time high. Banks have been collecting remittance dollars at rates ranging from Tk124.80 to Tk125.60, a significant increase from Tk124.20 just one day prior. In November 2023, the remittance dollar rate had reached its peak at Tk126 [ae7e41a9].
The United States remains a significant contributor to these remittances, with inflows reaching $497.9 million in October alone. The United Arab Emirates also plays a crucial role, contributing $1.03 billion from July to October [4a057fbd]. State-owned banks have notably outperformed private banks in remittance collection, with Rupali Bank reporting an astonishing 1,343% increase in remittance inflows [ae7e41a9].
This influx of remittances is vital for Bangladesh's economic stability, especially amid rising inflation and foreign exchange pressures. As of December 11, 2024, the country's foreign exchange reserves were reported at $19.2 billion, a decrease from $19.87 billion on October 30, 2024 [ae7e41a9]. The financial support from expatriates not only assists families but also contributes significantly to the overall resilience of the Bangladeshi economy [4a057fbd].