Remittance inflows climb 12% in October amid West Asia conflict

Remittances to Bangladesh have risen 12.1 percent year-on-year to $2.87 billion in October, extending an upward trend despite conflict in West Asia.

The inflow was nearly 4 percent higher than September’s $2.77 billion, Bangladesh Bank data released on Sunday showed.

Expatriate Bangladeshis sent $2.56 billion in October last year.

Saudi Arabia, home to more than 3.5 million Bangladeshis, is the country’s biggest remittance source, accounting for around 20 percent of the total.

But attacks on Riyadh by Yemen’s Houthi rebels amid the conflict that began in February have raised security concerns. Two Bangladeshis were killed and several others injured.

Security risks and suspended flights have disrupted workers’ lives in Saudi Arabia.

Economists warn that a prolonged crisis could affect manpower exports and remittance flows.

“Several attacks took place in Saudi Arabia in October. Everyone was frightened, and there were fears that remittances would fall. But inflows still posted strong growth,” Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan told bdnews24.com.

Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said remittances remained the economy’s strongest indicator.

A setback could pressure foreign exchange reserves and deepen the crisis, he said.

Bangladesh received $2.86 billion in July and $2.97 billion in August. Total inflows in the first four months of fiscal 2026-27 reached $11.47 billion, up 13 percent from $10.15 billion a year earlier.

Remittances hit a record $35.59 billion in fiscal 2025-26, up 17.34 percent year-on-year, averaging $2.97 billion monthly.

Foreign exchange reserves stood at $31.46 billion under the BPM6 measure on Thursday, Oct 29, and $36.33 billion in gross terms, Bangladesh Bank said.

The central bank says the BPM6 figure is immediately usable. At August’s import bill of $5.76 billion, it could cover five and a half months of imports, above the three-month international benchmark.

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