Dhaka: Bangladesh Bank (BB) Governor Dr Ahsan H Mansur today projected that the inflow of remittances will reach a record $30 billion in the fiscal year 2024-25 (FY25).
According to Bangladesh Sangbad Sangstha, expatriate Bangladeshis sent $15.96 billion in remittances during the first seven months of FY25, marking a 24 percent year-on-year increase. Dr Mansur, speaking at a seminar organized by the Economic Reporters Forum (ERF), expressed optimism about a 30 percent growth by the end of February, buoyed by upcoming Eid festivities.
The governor highlighted Bangladesh’s stable macroeconomic position, crediting a steady exchange rate and a surplus in the balance of payments. This stability follows recent political changes, with the current account recording a surplus under the new government led by Nobel Laureate Professor Muhammad Yunus. The BB reported a $33 million surplus in the current account balance for the first half of FY25, reversing a $3.47 billion deficit from the previous year.
Dr Mansur also addressed the foreign exchange market’s stability, aided by healthy remittance flows and anti-money laundering efforts. He acknowledged a slowdown in private sector credit growth, attributing it to reduced bank deposits and increased government borrowing. However, he noted improvements as Treasury bill bond rates have fallen below 10 percent, signaling reduced government borrowing.
On inflation, Mansur shared optimism about reducing the inflation rate to below 5 percent by FY26. The Bangladesh Bureau of Statistics reported a slight easing of inflation to 9.94 percent in January, down from 10.89 percent in December 2024. Mansur also revealed the impending ‘Bank Resolution Act’, aimed at empowering Bangladesh Bank with tools for addressing banking sector crises.
The seminar, presided over by ERF President Doulat Akhter Mala, also featured insights from Professor Mustafizur Rahman and Mohammad Ali, CEO of Pubali Bank PLC.