Remittance sending cost rises by 4%

The average cost of sending remittances to Bangladesh through formal banking channels increased by 4 percent in the April-June quarter of 2026, according to a Bangladesh Bank report.

The average cost rose to 1.82 percent from 1.78 percent in the January-March quarter.

In practical terms, sending $1,000 to Bangladesh cost an average of $18.20, up from $17.80 in the previous quarter.

The central bank attributed the rise to higher service charges by foreign banks and exchange houses, various fees and taxes imposed on remittance transfers, and fluctuations in exchange rates.

The cost of sending smaller amounts remained relatively high. For transfers of up to $200, the average cost increased from 2.83 percent to 2.94 percent.

For amounts above $500, the cost edged up from 0.49 percent to 0.50 percent.

Experts warned that higher costs through formal channels could encourage expatriate Bangladeshis to use informal hundi networks.

They suggested that the central bank should work with foreign banks and exchange houses to reduce transfer costs and expand banking facilities for Bangladeshi migrants.

The report showed that costs increased in several major remittance-sending countries, including the UAE, Malaysia, Qatar, Italy, Oman and the UK, while costs declined in Kuwait, the US and Singapore.