Remittance inflows in Bangladesh climbed to a new monthly high in March, as expatriates sent $3.75 billion during Ramadan and ahead of Eid-ul-Fitr, amid rising uncertainty linked to the Middle East conflict.

Data from the Bangladesh Bank showed that inflows rose sharply from $3.02 billion in February, continuing an upward trend from $3.11 billion in January and $3.22 billion in December.

This marked the first time remittances remained above $3 billion for four consecutive months.

The March figure was also about 14 per cent higher than the $3.29 billion recorded in the same month a year earlier.

In the first nine months of the 2025-26 financial year, remittance receipts increased by about 20 per cent to $26.2 billion, compared with those of $21.82 billion in the corresponding period of the previous fiscal year, reflecting sustained growth in inflows.

Bankers said that seasonal factors played a key role in the surge, as migrant workers typically send higher amounts during Ramadan to support family spending for Eid.

This year, Eid-ul-Fitr, one of the biggest religious festivals of the Muslims, was observed on March 21.

They also pointed to the ongoing Middle East conflict as an additional factor.

Many expatriates reportedly sent larger sums or transferred savings back home due to concerns over potential disruptions in host countries and financial uncertainty linked to the war.

Tensions escalated after the United States and Israel launched attacks on Iran on February 28, followed by retaliatory strikes targeting US bases in the Middle East region.

The conflict remains ongoing, adding to uncertainty across key remittance-source countries.

Despite the record inflow in March, analysts cautioned that remittance growth might face pressure in the coming months if the conflict persisted and economic conditions in host countries deteriorated.

The exchange rate has already shown signs of strain.

The interbank dollar rate rose to about Tk 122.8 on Wednesday from Tk 122.27 in late February, indicating growing pressure on the local currency.

Among banks, Islami Bank Bangladesh PLC collected the highest remittance inflows in March amounting $590 million.

Bangladesh Krishi Bank followed with $464 million, BRAC Bank received $398 million, Agrani Bank $267 million, Trust Bank $248 million and Janata Bank $221 million.

Bangladesh recorded more than $30 billion in remittance inflows for the first time in the 2024-25 financial year, with total receipts reaching $30.32 billion, up from $23.91 billion a year earlier.

Monthly inflows have remained above $2 billion since August 2024.

Officials said that policy support had contributed to the steady rise.

Since January 2022, the government has provided a 2.5 per cent cash incentive on remittances sent through formal banking channels.

Improved exchange rates and stricter monitoring of cross-border transactions have also encouraged expatriates to avoid informal transfer systems.

Higher remittance earnings have helped ease pressure on the balance of payments and support foreign exchange reserves.

According to the Bangladesh Bank, reserves stood at $29.35 billion under IMF methodology at the end of February, while gross reserves were around $34 billion.