Bangladesh records highest remittance in 20 years

With three days remaining in the year, data from Bangladesh Bank indicates that in 2024 (January 1 to December 28), Bangladesh has received the highest remittance in 20 years through legal channels. This achievement stems from the robust remittance flow that began early in the year and continued consistently.

On December 29, updated remittance data from Bangladesh Bank confirmed this record-breaking performance. Earlier, in its annual report, the Refugee and Migratory Movements Research Unit (RMMRU) had predicted that remittance for 2024 could reach USD 26.4 billion if the trend from the first 11 months persisted, marking a 32.54% increase compared to the previous year. However, the latest figures reveal that the total remittance has already crossed USD 26.6 billion.

Additionally, Bangladesh Bank reports that the country has received the highest remittance in the first six months of a fiscal year since 2019–2020. Previously, the highest remittance for the first half of the fiscal year was USD 12.94 billion in 2020–21. However, with three days remaining, this record has been surpassed, with remittance reaching USD 13.55 billion. In other fiscal years, remittance for the first six months hovered around USD 10 billion.

On a monthly basis, December 2024 has also recorded the third-highest remittance inflow in the past 66 months, with USD 2.42 billion in the first 28 days. The highest monthly remittance was USD 2.59 billion in July 2020, followed by USD 2.53 billion in June 2024.

According to Dr. Tasneem Arefa Siddiqui, Chairperson of RMMRU and Professor of Political Science at Dhaka University, over 900,000 men and women have migrated abroad for work from January to November 2024. In comparison, more than 1.3 million individuals migrated in 2023. If the current migration trend continues, the total number of migrant workers in 2024 could reach 1 million, a 30.80% decrease from the previous year.

Despite record-breaking remittance inflows, Dr. Siddiqui noted that remittance did not increase from countries with higher migration rates in 2024. She highlighted significant trends in remittance flows, pointing out that the United States has emerged as the top remittance-sending country, which deviates from conventional patterns.

Data from Bangladesh Bank indicates that the top five remittance-sending countries from January to October 2024 were the United States, UAE, Saudi Arabia, Malaysia, and the UK.

In October 2024, Bangladesh Bank introduced a new loan facility to encourage remittance through banking channels and reduce informal methods like hundi. Family members of legal remittance senders can now avail collateral-free loans of up to BDT 1 million. The loans, provided through commercial banks, must be repaid using remittance installments at market-based interest rates. These loans can be used for house construction and other expenses.

RMMRU has recommended lowering the interest rate by 2–3% for short-term migrants who regularly remit money through formal channels.

The interim government has removed the investment cap of BDT 10 million for non-resident Bangladeshis (NRBs) in US Dollar Premium Bonds, US Dollar Investment Bonds, and Wage Earners' Development Bonds. This allows NRBs to invest any amount, promoting foreign currency accumulation.

However, RMMRU believes this change benefits long-term migrants more than short-term ones. They suggest introducing investment options that encourage small savings for short-term migrants.

Labour wings have been established in 30 countries to serve semi-skilled and low-skilled migrant workers. However, RMMRU observed that eight of these labor attaché offices are in countries like Australia, Russia, Spain, Switzerland, Japan, South Africa, and Mauritius, where Bangladeshi semi-skilled and low-skilled workers are not prevalent.

Additionally, labor attaché positions are currently reserved for administrative cadre officials, excluding representatives from DEMO (District Employment and Manpower Office) and BMET (Bureau of Manpower, Employment, and Training). RMMRU has called for more strategic policies to ensure that Bangladeshi workers in key destination countries can access government services and benefits efficiently.