BB chief expects $30b remittances in FY25
Bangladesh Bank (BB) Governor Dr Ahsan H Mansur today expected that the inflow of remittances will hit a new record of US$30 billion in the fiscal year 2024-25 (FY25).
“This is no doubt that the inflow of remittances is very strong. Bangladesh witnessed around 24 percent growth during the first seven months of the fiscal 2024-25. I expect that the growth will be around 30 percent at the end of February. Eid-ul-Fitr will be observed in the next month. Eid-ul-Azha will be observed after two months. So, I expect that inflow of remittances will be around $30 billion,” he said.
The BB governor said this while speaking as the chief guest at a seminar on “Bangladesh’s Macroeconomic Landscape: Challenges in the Banking Sector and the Path Ahead”, organised by the Economic Reporters Forum (ERF) at its auditorium in the city.
According to BB data, expatriate Bangladeshis sent a total of $15.96 billion remittances during the first seven months of the ongoing fiscal year2024–25, registering a 24 percent year-on-year growth.
Ahsan H Mansur, however, said that Bangladesh’s macroeconomic position has reached a stable state, with a steady exchange rate and a surplus in the balance of payments.
He described this as a significant achievement following the recent political changes in the country.
The governor said the current account, a key component of the country's balance of payments, has recorded a surplus after six months of the new government led by Nobel Laureate Professor Muhammad Yunus.
"There was a deficit in the balance of payments, our reserve was falling, and our currency was depreciating rapidly. But now current account has become positive. Our financial account is also in the positive position. Our reserve is also increasing gradually,” he added.
According to the BB, the current account balance showed a surplus of $33 million during the first half of the 2024–25 fiscal year against a deficit of $3.47 billion during the corresponding period of the previous fiscal year (July 2023–June 2024).
He said the country’s foreign exchange market is also witnessing a stable condition due to healthy flow of inward remittances alongside visible preventive measures against money laundering.
Dr Mansur acknowledged the slowdown in private sector credit growth, attributing it to declining bank deposits and increased government borrowing from the banking system.
He noted that the situation is improving as Treasury bill bond rates have declined from 12.5 percent to below 10 percent.
“This indicates a reduction in government borrowing from the banking sector, paving the way for increased private sector credit growth,” he added.
Regarding inflation, Mansur has expressed his optimism that the general point to point inflation rate would come down below 5 percent by the next fiscal year (2025-26).
“Our aims are to bring inflation down to 7 percent by next June. We’ll bring it down to 5 percent by the next fiscal year (2025-26) and I hope it is possible. Due to taking different measures, inflation is coming down gradually,” he said.
According to the latest data from the Bangladesh Bureau of Statistics (BBS), the general point-to-point inflation rate in Bangladesh slightly eased in January last as it reached 9.94 percent down from 10.89 percent in December, 2024.
Mansur informed that a new law titled ‘Bank Resolution Act’ is in the offing to allow the Bangladesh Bank to legally apply corrective measures like mergers and acquisitions, liquidation, re-capitalisation and consolidation of the crisis-ridden banks.
“We have already prepared the draft of the ‘Bank Resolution Act’. We have sent it for betting,” he added.
Distinguished Fellow of the Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman and Managing Director and Chief Executive Officer (CEO) of the Pubali Bank PLC Mohammad Ali also spoke on the occasion.
ERF President Doulat Akhter Mala presided over the seminar.