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Analyzing November Remittance Trends and Strategies for Boosting Inflows

November Remittance Trends and Strategies for Boosting Inflows

In the intricate tapestry of Bangladesh’s economic landscape, the month of November unfolded with discernible shifts in the dynamics of expatriate remittances. As reported by the Bangladesh Bank, a total inflow of $193 million graced the nation during this period, signifying a notable deviation from the figures observed in October, marked by a $50 million decrease. The intricacies surrounding this fiscal phenomenon are unveiled through the lens of the latest data, shedding light on the multifaceted influences of changing dollar rates and central interventions.

The nuances embedded in this scenario paint a detailed portrait of the complex interplay between global economic variables and domestic financial strategies. Against the backdrop of a month-on-month decline, a panoramic examination of the data invites a closer inspection, revealing a trajectory that, when viewed in a broader context, presents an encouraging narrative. In comparing the recent downturn to the analogous timeframe in the preceding year, the resilience and adaptability of Bangladesh’s remittance landscape come to the forefront, illustrating a positive overall trajectory that transcends short-term fluctuations.

Within this economic narrative, the intricate dance between remittances, dollar rates, and central interventions becomes pivotal. The symbiotic relationship between these factors unfolds against the backdrop of a globalized financial ecosystem, where the minutest alterations in currency values and policy interventions resonate across borders. Understanding these nuances is paramount, as they not only elucidate the immediate fluctuations in remittance patterns but also offer insights into the larger mechanisms shaping the economic fortunes of the nation.

As we delve into the intricacies of November’s remittance dynamics, the story that unfolds is one of adaptability and resilience. Beyond the apparent ebb and flow of monthly figures, a deeper examination reveals the adaptive responses of expatriates and financial institutions to the ever-shifting currents of the global economic tide. It is within this context that the decline in remittances during November takes on a new dimension – not merely as a statistical blip but as a reflection of a dynamic system responding to a confluence of factors.

In navigating this nuanced landscape, stakeholders, policymakers, and economic observers are presented with an opportunity to glean valuable insights. The resilience exhibited by Bangladesh’s remittance sector becomes a testament to its ability to weather short-term challenges while continuing to contribute significantly to the nation’s economic vitality. As we embark on a deeper exploration of the specifics and intricacies surrounding November’s remittance figures, the broader implications for Bangladesh’s economic resilience and adaptability come to the forefront.

November Figures and a Year-on-Year Perspective:

As we scrutinize the financial landscape of Bangladesh at the culmination of November, a distinctive set of figures emerges, delineating the contours of expatriate remittances during this crucial period. The ledger, as reported by the Bangladesh Bank, reveals a total remittance influx of $193 million into the country, a substantial economic heartbeat that resonates through the corridors of fiscal policy.

Translating this sum into the local currency, the remittances amounted to a formidable 21 thousand 181 crore 75 lakh taka. This numeric translation not only underscores the magnitude of financial transactions but also emphasizes the intricate dance between global currencies and their local equivalents. Each taka represents not just a unit of currency but a testament to the financial ties that bind nations and their diasporas.

However, the narrative takes an interesting turn when we juxtapose these figures against the backdrop of the preceding month. October, marked by an inflow of remittances totaling $50 million more than November, sets the stage for contemplation. This month-on-month decline prompts an exploration into the catalysts steering this financial ebb. Such fluctuations are not mere numerical variances; they are dynamic reflections of the ever-evolving economic ecosystem, influenced by a myriad of factors.

Delving deeper into the comparative analysis, the contrast against the canvas of November 2022 unveils an intriguing tale of financial evolution. Despite the $50 million dip from the previous month, Bangladesh stands witness to a substantial increase of $330 million in remittances when measured against the corresponding period in the previous year. This dichotomy encapsulates the inherent volatility and resilience ingrained in the remittance landscape.

The surge in remittances, when viewed through the lens of year-on-year growth, serves as a testament to the enduring financial ties between the Bangladeshi diaspora and their homeland. It speaks to the adaptability of expatriates and the robustness of the mechanisms facilitating these cross-border transactions. While the month of November may bear witness to a temporary contraction, the broader trajectory reveals a commendable upward swing, mirroring the steadfast commitment of expatriates to contribute meaningfully to the economic fabric of Bangladesh.

In essence, these figures are not static markers but dynamic indicators of a financial narrative constantly unfolding. Beyond the numerical values lie stories of resilience, adaptability, and interconnectedness, weaving a tapestry that reflects the evolving nature of global financial landscapes and the vital role of remittances in sustaining economic vitality.


Insights from the Bangladesh Bank Report: 

Diving into the intricacies of expatriate remittances, the Bangladesh Bank’s comprehensive report unveils a detailed tapestry of financial channels through which funds traverse borders and reach the heart of Bangladesh’s economic ecosystem. This meticulous breakdown serves as a financial roadmap, shedding light on the diverse avenues that collectively contribute to the nation’s remittance landscape.

Within this intricate web of transactions, state-owned banks emerge as significant players, channeling a substantial portion of the remittance influx. The report indicates that these institutions played a pivotal role by facilitating remittances amounting to 14 crore 42 lakh 60 thousand dollars. This sizeable contribution underscores the trust placed in state-owned entities and the integral role they play in the regulated flow of financial resources.

Specialized banks, occupying a distinct niche within the financial architecture, made their own mark by adding 5 crore 31 lakh 80 thousand dollars to the remittance pool. These banks, designed to cater to specific sectors and functions, demonstrate a unique capacity to address targeted financial needs, as evidenced by their contribution to the overall remittance landscape.

Private banks, known for their agility and adaptability, emerge as formidable facilitators in the remittance saga. The Bangladesh Bank report reveals that private banks played a leading role, overseeing the transmission of a staggering 172 crore 66 lakh 80 thousand dollars. Their extensive reach, coupled with a customer-centric approach, positions them as key conduits for the movement of funds from overseas to domestic shores.

In the globalized financial tapestry, foreign banks carve out their own space, contributing significantly to the intricate web of remittances. According to the report, foreign banks added 59 lakh 20 thousand dollars to the financial tide flowing into Bangladesh. This international participation underscores the interconnectedness of economies and the role of cross-border financial institutions in shaping the economic fortunes of nations.

Yet, amidst this dynamic flow of remittances, the report unveils a curious dimension — seven banks, including notable entities like the state-owned Bangladesh Development Bank and the specialized Rajshahi Agricultural Development Bank, reported no remittances. This anomaly beckons a closer examination, raising questions about the specific circumstances surrounding these institutions. Whether driven by operational nuances or strategic decisions, the absence of remittances in these banks adds an intriguing layer to the overall narrative.

In essence, the Bangladesh Bank report is more than a compilation of numbers; it is a narrative of financial ecosystems in motion. It portrays a diverse landscape where state-owned, specialized, private, and foreign banks each play distinct roles in orchestrating the symphony of remittance transactions. As Bangladesh continues to navigate the complexities of its economic voyage, these insights provide stakeholders and policymakers with a roadmap for understanding and optimizing the various channels through which the lifeblood of remittances pulses through the nation’s financial veins.

Sector Observations and Historical Context:

Within the labyrinth of economic landscapes, sector observers cast their discerning eyes on the dynamics of remittances, seeking to decipher patterns, trends, and the historical underpinnings that shape the financial currents. A particularly intriguing chapter in this economic saga unfolded in the year 2020, a period marked by the surge in remittance flow attributed to the closure of informal channels like hundi.

Industry officials, custodians of financial insights, point to the consequential impact of this closure on the formal banking sector. The vacuum left by the informal channels prompted a notable redirection of remittance flows towards formal banking channels. This strategic shift not only brought transparency and regulatory oversight to the fore but also acted as a catalyst for the substantial increase in remittance inflow.

Fast-forwarding to the 2022-2023 financial year, a pivotal epoch emerges in the annals of Bangladesh’s economic history. Expatriates, recognizing the reliability and efficacy of formal banking channels, steered a noteworthy $2,161 million through these avenues. This substantial figure etches itself as the second-highest remittance influx in recorded history, symbolizing a testament to the enduring trust placed in formal financial institutions.

Comparisons with the preceding fiscal year, marred by the unprecedented challenges of the global pandemic in 2020-2021, unveil a compelling narrative of resilience and adaptability. Despite the tumultuous economic climate, the remittance figures soared from $2,477 million to $2,161 million in the 2022-2023 financial year. This stark increase not only signifies the capacity of the remittance sector to weather external shocks but also highlights the enduring commitment of the diaspora to support their homeland during times of adversity.

The closure of informal channels in 2020 served as a catalyst for a paradigm shift, propelling remittance transactions into the formal banking domain. This strategic realignment not only bolstered regulatory oversight but also fortified the economic infrastructure against illicit financial activities. The subsequent surge in remittance figures, particularly in the 2022-2023 financial year, underscores the resilience of the sector and its ability to navigate complex economic landscapes.

In this historical context, the trajectory of remittances becomes emblematic of more than just financial transactions; it embodies a symbiotic relationship between expatriates and their homeland. The diaspora’s trust in formal banking channels and their proactive engagement with the financial system depict a narrative of partnership and shared economic destiny. As the sector continues to evolve, these historical reflections serve as guiding beacons, providing insights into the sector’s adaptive prowess and its role in fortifying the economic foundations of Bangladesh..

November Dynamics and Sector Response:

Within the dynamic realm of financial ecosystems, the month of November brought forth a series of intricate dynamics in the landscape of remittances, sparking reflections from sector officials and banking experts alike. The ebb and flow of financial currents during this period became a canvas on which the interplay of market forces and regulatory interventions painted a nuanced picture.

At the onset of November, the remittance sector experienced a notable surge, fueled by a favorable dollar rate. The initial uptick in the flow of remittances underscored the sensitivity of expatriate decisions to currency valuation. In a globalized world, where exchange rates can sway economic decisions, the conducive dollar rate acted as a catalyst, prompting expatriates to seize the opportune moment to remit funds back to their homeland.

However, the narrative took a turn as central intervention entered the scene. Banks, as custodians of financial stability, responded to this surge in remittances by strategically adjusting the dollar price. The rationale behind such interventions often lies in maintaining stability, preventing speculative activities, and ensuring a controlled economic environment. As a result of these interventions, the momentum gained from the favorable dollar rate was tempered, introducing an element of controlled moderation.

The subsequent reduction in the dollar price, a measured response to the influx of remittances, had ripple effects within the expatriate community. The decrease in the dollar value had a dampening effect on the enthusiasm of expatriates to utilize formal and legal channels for remittance transactions. In the intricate calculus of financial decision-making, expatriates, much like any other economic actors, respond to incentives and disincentives. The diminished value of the dollar acted as a disincentive, deterring individuals from opting for legal channels that now offered less favorable exchange rates.

This sectoral response not only mirrors the delicate balance that financial institutions must strike between encouraging remittances and ensuring macroeconomic stability but also sheds light on the resilience and adaptability of the remittance landscape. The sector, accustomed to navigating the ebbs and flows of global economic dynamics, demonstrated its capacity to respond to external stimuli with agility and prudence.

As November unfolded, the sector’s responsiveness to changing dynamics became a testament to the intricate dance between market forces and regulatory measures. In the tug-of-war between favorable dollar rates and central interventions, the remittance sector showcased its ability to navigate the delicate balance between facilitating the flow of funds and maintaining economic equilibrium. These dynamics, while influencing the month’s reported figures, also underscore the need for nuanced policy approaches that foster a symbiotic relationship between expatriates and the formal financial channels that connect them to their homeland.

Year-to-Date Overview:

As we navigate the fiscal landscape of the ongoing 2023-24 financial year, a panoramic view of remittance trends emerges, delineating a comprehensive narrative of the contributions of expatriates to the economic vitality of Bangladesh. From the commencement of July to the close of November, a cumulative total of 881 million 45 million US dollars flowed back to Bangladesh, echoing a consistent and measured trajectory.

The breakdown of this cumulative figure over the five-month period offers a granular perspective on the ebb and flow of remittances. July, the inaugural month of the fiscal year, witnessed expatriates channeling back 197 crore 31 lakh 50 thousand US dollars to their homeland. This initial surge set the tone for the fiscal year, showcasing the unwavering commitment of the diaspora to actively participate in the economic sustenance of Bangladesh.

August continued this financial narrative, with remittances amounting to 159 crore 94 lakh 50 thousand US dollars. The month-on-month decrease from July does not signify a waning interest in remittance transactions; rather, it reflects the natural variability inherent in financial flows. August, characterized by its own set of economic dynamics, contributed to the steady and cumulative influx of funds, adding to the economic resilience encapsulated in the remittance landscape.

The financial tide continued its course into September, with a reported remittance figure of USD 133.43 million. This month, marked by its distinct economic events and global financial currents, further contributed to the cumulative total. The sequential decrease from August, once again, is a testament to the nuanced nature of remittance dynamics, responding to a myriad of factors that influence economic decisions on both ends of the transaction.

Altogether, these first three months of the fiscal year form a cohesive tapestry, illustrating a steady flow of financial support from expatriates to their home country. The cumulative figure of 881 million 45 million US dollars over this period is more than a numerical sum; it encapsulates the stories of countless individuals striving to contribute meaningfully to the economic well-being of Bangladesh. These remittances, sent through formal channels, serve not only as financial transactions but as expressions of solidarity and commitment from the diaspora scattered across the globe.

In essence, this year-to-date overview paints a dynamic picture of the ongoing economic relationship between expatriates and Bangladesh. As the fiscal year unfolds, this narrative will undoubtedly evolve, reflecting the adaptability of the remittance landscape to global economic shifts and the unwavering bond between the diaspora and their homeland.

Remittance Distribution Channels:

The intricate network of remittance distribution channels plays a pivotal role in shaping the economic landscape of Bangladesh. November’s breakdown of remittances by banking channels offers a nuanced perspective, shedding light on the diverse pathways through which funds traverse and contribute to the nation’s financial tapestry. Understanding these channel-specific patterns becomes imperative for policymakers, financial institutions, and stakeholders alike, as it lays the groundwork for formulating effective strategies that resonate with the dynamics of the remittance sector.

State-owned banks, entrusted with a significant role in the financial architecture, emerged as key recipients of remittances in November. The robust figure of $144 million underscores the confidence placed in these institutions by expatriates opting for the formal and regulated routes for fund transmission. This contribution reflects not only the financial acumen of state-owned banks but also their pivotal role in fostering economic stability and regulatory oversight.

Specialized banks, designed to cater to specific sectors and functions, played a distinct role in the remittance landscape, receiving $32 million during the month. The focused nature of these banks allows them to address targeted financial needs, presenting a unique avenue for expatriates to channel their funds based on specific requirements. This diversification in remittance channels adds a layer of resilience to the overall financial infrastructure.

Private banks, known for their agility and customer-centric approach, stood at the forefront of remittance reception, garnering a substantial $172 million. The impressive figure is a testament to the extensive reach and efficiency of these banks in facilitating cross-border transactions. Private banks, with their adaptability and innovative financial services, continue to be a preferred choice for expatriates navigating the formal remittance landscape.

Foreign banks, representing the globalized facet of the financial ecosystem, contributed $59 million to the remittance influx in November. The involvement of international financial institutions in this process highlights the interconnectedness of economies and the role of cross-border collaborations in shaping global financial flows.

However, the distribution map of remittances also reveals a unique set of circumstances. A handful of banks, including Bangladesh Development Bank, Rajshahi Agricultural Development Bank, Community Bank, Citizens Bank, Habib Bank, National Bank of Pakistan, and State Bank of India, reported zero remittances during this period. This anomaly prompts a closer examination, raising questions about the specific circumstances surrounding these institutions. Whether driven by operational nuances, market dynamics, or strategic decisions, understanding the reasons behind zero remittances from these banks is crucial for refining the overall remittance strategy.

In conclusion, the distribution channels of remittances in November paint a multifaceted picture of the economic intricacies at play. State-owned, specialized, private, and foreign banks each contribute to the financial symphony in their unique ways. Recognizing the patterns and anomalies within these channels is a prerequisite for crafting policies that not only foster the efficient flow of funds but also address the challenges and opportunities inherent in the diverse landscape of remittance distribution.Factors Influencing Remittance Fluctuations:

The report attributes the decline in remittances to a reduction in the dollar rate, leading to decreased incentives for expatriates to use legal channels due to higher costs. The central intervention by banks to stabilize the currency may inadvertently discourage expatriates from utilizing formal channels. It is imperative to explore potential solutions that strike a balance between stabilizing the currency and maintaining an attractive remittance environment.

Historical Perspectives:

Delving into the annals of remittance history in Bangladesh unveils a series of pivotal events and shifting dynamics that have shaped the contours of financial inflows from expatriates. A notable turning point occurred in 2020 when the closure of informal channels like hundi triggered a seismic shift in remittance patterns. This closure, motivated by regulatory measures, inadvertently steered remittances towards formal banking channels, marking a transformative moment in the country’s economic narrative.

The closure of hundi, often associated with unregulated and informal channels, compelled a significant portion of expatriates to reconsider their remittance pathways. The regulatory intervention not only brought transparency and accountability to the remittance landscape but also redirected funds through official banking channels. This strategic move laid the groundwork for a substantial increase in remittances through the formal sector, setting the stage for a new era of financial flows.

Fast forward to the fiscal year 2022-2023, and Bangladesh witnessed a remarkable milestone in its remittance history. Expatriates, buoyed by the structured and regulated environment facilitated by formal banking channels, sent a staggering $2,161 million back to their homeland. This figure, the second-highest remittance ever recorded, signifies not only the resilience of the remittance sector but also the enduring trust placed by expatriates in the formal financial infrastructure.

Understanding these historical trends becomes paramount, especially in the context of the significant impact of the COVID-19 pandemic on global economies. The pandemic, with its far-reaching consequences, has reverberated through the remittance landscape, influencing the decisions and patterns of expatriates worldwide. Analyzing past trends provides valuable insights into how the remittance sector responded to external shocks, adapted to regulatory changes, and navigated the complex interplay of economic forces.

The closure of hundi in 2020, while a catalyst for change, is emblematic of the continuous evolution of financial ecosystems. It not only ushered in a new era of transparency but also underscored the adaptability of expatriates in navigating changing circumstances. The subsequent surge in remittances during the fiscal year 2022-2023 exemplifies how historical events can reshape the dynamics of financial flows, offering lessons for future strategies and policy formulations.

As nations grapple with the ongoing challenges posed by the pandemic, historical perspectives become guideposts for policymakers and industry stakeholders. The resilience exhibited by the remittance sector in the face of past disruptions offers a roadmap for navigating the uncertainties of the present. Informed by these historical insights, strategies can be crafted to not only mitigate the immediate impacts of external shocks but also foster a robust and adaptive remittance landscape that serves the needs of both expatriates and the homeland they support.

Strategies to Increase Remittance Inflows:

1. Currency Stabilization Measures: 

Collaborative efforts between the central bank and financial institutions should focus on implementing measures that stabilize the currency without discouraging remittances. Striking the right balance is essential for maintaining a favorable environment for both expatriates and financial institutions.

2. Promoting Formal Channels: 

There is a need for awareness campaigns targeting expatriates to emphasize the benefits of using formal channels. This includes faster and more secure transactions, better exchange rates, and supporting the country’s economic growth.


3. Technology Integration: 

Investing in technological solutions can streamline remittance processes, making them more convenient and cost-effective for both expatriates and financial institutions. Mobile applications and online platforms can facilitate easy and efficient transactions.

4. Diversification of Banking Channels: 

Encouraging a more diverse distribution of remittances across various banks can enhance competition, potentially leading to better services and incentives for expatriates.


The fluctuations in November’s remittance figures underscore the sensitivity of the market to factors like currency exchange rates and central interventions. Despite the month-on-month decrease, the year-on-year growth signifies the resilience of remittance flows. As Bangladesh navigates the complexities of global economic dynamics, stakeholders and policymakers must remain vigilant to sustain and optimize the benefits of expatriate contributions to the national economy.


Analyzing the November remittance data sheds light on both challenges and opportunities. While the decline in remittances is a concern, the year-over-year increase and historical trends provide a basis for optimism. Implementing a balanced approach that considers currency stabilization, awareness campaigns, technological advancements, and diversified banking channels can pave the way for sustained growth in remittance inflows. By addressing the challenges outlined, Bangladesh can build a resilient and dynamic remittance ecosystem.

Billal Hossain
Billal Hossain
Billal Hossain, a seasoned professional with a Master's degree in Mathematics, has built a rich and varied career as a banker, economist, and anti-money laundering expert. His journey in the financial sector has seen him in leading roles, notably in AL-Rajhi Banking Inc. in the Kingdom of Saudi Arabia and as Foreign Relations and Correspondent Maintenance Officer of Bank-AL-Bilad. Beyond the confines of traditional finance, Billal has emerged as a prominent writer and commentator, contributing thought-provoking columns and theses to various newspapers and online portals. His expertise spans a wide range of important global issues, including the complexities of economics, political dynamics, the plight of migrant workers, remittances, reserves, and other interrelated aspects. Billal brings a unique analytical perspective to his writing, combining academic rigor with practical insights gained from his banking career. His articles not only demonstrate a deep understanding of complex issues but also provide readers with informed perspectives, bridging the gap between theory and real-world application. Billal Hossain's contributions stand as a testament to his commitment to unraveling the complexities of our interconnected world, providing valuable insights that contribute to a broader and more nuanced understanding of the global economic landscape.


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