In a significant blow to Bangladesh’s economy, an internet outage from July 18 to July 23 drastically disrupted remittance flows into the country. During the first 18 days of July, Bangladesh received an average of $79 million daily in remittances, but this dropped to virtually zero during the six-day outage. Despite this setback, Bangladesh Bank reported $1.5 billion in remittances in the first 24 days of July.

The internet blackout severely hampered remittance collection through banks and mobile financial services (MFS) providers, which remained largely suspended until broadband services were partially restored. Officials from these institutions reported that overall remittance mobilization remains below normal levels even after services resumed.
Surge in Remittances Preceding Outage
Bangladesh saw impressive remittance figures in the months leading up to July, with $2.04 billion in April, $2.25 billion in May, and a record $2.54 billion in June—the highest in the past 47 months. However, the recent internet outage has created a significant disruption in this upward trend.
Central Bank’s Response: Higher Exchange Rates
In response to the crisis, Bangladesh Bank has taken measures to attract remitters to formal channels by offering higher exchange rates for US dollars. On July 28, the central bank verbally instructed some banks to offer up to Tk119 per US dollar, above the previous maximum of Tk118. This move aims to mitigate the impact of the five-day internet blackout and the ongoing forex crisis, which has plagued the country for over two years.
Expert Insights and Future Outlook
Bangladesh Bank Executive Director and spokesperson Md Mezbaul Haque acknowledged that remittance collection remains disrupted due to incomplete internet restoration. He expressed hope that expatriates would continue using banking channels for remittances and noted that a complete reconciliation of remittances for July would be available by the month’s end.
Selim RF Hussain, managing director of BRAC Bank and chairman of the Association of Bankers Bangladesh, highlighted the likely reduction in July’s overall remittance collection due to the outage. He anticipates a clearer understanding of the situation in the coming week.
The majority of remittances from the Middle East come through Islami Bank Bangladesh, which collects more than one-fourth of the country’s total remittance flow. Islami Bank’s Managing Director, Muhammad Munirul Moula, reported that limited banking activities resumed on July 24, with remittances sent during the closure period now being processed.
Future Challenges
A campaign against sending remittances through banking channels has also emerged, adding another layer of complexity to the situation. The impact of this campaign will become clearer in the coming weeks, posing additional challenges to remittance flows and the broader economic stability of Bangladesh.