The nearly 21% month by month drop in inward remittances through mobile financial services (MFS) in June should be seen as a potential warning sign that our expat workers may not be finding it feasible to send their remittance through formal channels.
For an economy that relies so heavily on remittance inflows to stabilize foreign exchange reserves, support household consumption, and cushion external shocks, it is imperative that we do all we can to make it simpler for expat workers to send their money home.
Remittances are one of Bangladesh’s most dependable economic lifelines and when they fall, the impact is immediate: Families struggle, rural economies slow, and pressure on the balance of payments intensifies.
At a time when our country is already navigating inflation, dollar shortages, and a fragile external sector, any decline should compel policy-makers to take notice.
While we agree with experts that this is no time to sound alarm bells, and that remittance earnings may yet revert back to the highs we have become accustomed to over the past two years, it is still imperative that migrant workers are shielded from the high transfer costs, inconsistent incentives, and bureaucratic hurdles that push many toward informal channels.
When formal systems become less attractive or less reliable, remittances slip underground and deprive the economy of much‑needed foreign currency.
Ensuring stable remittance flows requires a combination of streamlined digital transfer systems and stronger outreach to migrant communities. It also demands continuous coordination between banks, MFS providers, and regulators to make formal channels faster, cheaper, and more trustworthy.
Our long‑term economic stability depends on protecting this vital source of income. Bangladesh must continue to do all it can to build confidence in formal remittance channels and ensure that the earnings of migrant workers continue to strengthen the nation.