Dhaka, Aug. 24 -- Bangladesh is rightly celebrated as one of the world's largest recipients of remittances, with inflows projected to exceed $30 billion by 2025.
These transfers sustain household consumption and underpin foreign exchange reserves.
Yet, a vast share of outward transactions continues to bypass formal banking, strengthening the grip of the Hundi system and eroding the benefits that should accrue to the economy.
The paradox is stark. According to a report published in The New Nation on Saturday, while remittances pour in, only $211 million in outward transfers were recorded officially in 2023, against market estimates of $5-7 billion.
The difference reflects the reality that restrictive regulations have created a thriving i...