Remittances and Migrant Workers

How millions of Bangladeshis working in the Gulf, Malaysia and elsewhere send remittances home, the costs of migration, and how informal hundi channels affect official flows.

Remittances are a key part of Bangladesh’s economy.

Scale

Bangladesh receives over 20 billion dollars a year in remittances.
Millions of Bangladeshis work in Saudi Arabia, the UAE, Malaysia, Qatar and elsewhere.

Importance

Remittances support households and foreign exchange reserves.
They’re the second-largest source of foreign currency after garment exports.

High migration costs

Bangladeshi workers often pay among the highest recruitment fees in the world, sometimes several thousand dollars, to agents.

Hundi

Much money flows through informal hundi channels, which offer better exchange rates.
When official rates were far below market rates, official remittances fell.
The government offers incentives (a percentage bonus) for sending money through banks.

Surge after 2024

Official remittances rose after the 2024 political change as exchange rate management shifted and confidence improved.

The Malaysia worker

A Bangladeshi worker in Malaysia sends money home through a bank app to get a government bonus, instead of using a hundi agent.

Thinking all remittances go through banks

Much flows through informal hundi channels.

Key takeaways

Bangladesh receives over 20 billion dollars a year in remittances.
Remittances are the second-largest foreign currency source.
Migration costs are among the world's highest.
Hundi channels divert flows when rates differ.