Several alternative estimates are made of the flow of remittances sent by the Bangladesh workers in the Middle East and the conclusion is reached that most of the potential remittance is actually sent through the official channel. Some of the impacts of these remittances on the Bangladesh economy are also analysed. The main focus is on the impact on balance of payments on the one hand and he income and savings of the remittance receiving households on the other. In connection with the balance of payments impact, attention is drawn to the possible ‘distortion costs’ that may be involved in stimulating increased flow of remittances, given the structure of the foreign exchange market in Bangladesh. The absolute impact on the income and savings of the remittance-receivers is found to be substantial; but the impact on the relative distribution of income seems disconcerting.