Bangladeshi expatriates in the United States (US) sent home the highest amount of remittances in February, totalling US$491.26 million, according to data from Bangladesh Bank (BB).
Following the political transition in August, remittance inflows from the US have significantly increased, enabling the country to surpass the United Arab Emirates (UAE), which had long been the leading source of expatriate income.
The UAE ranked second, with expatriates sending $334.94 million in remittances to Bangladesh last month. The Kingdom of Saudi Arabia (KSA), which hosts the highest number of Bangladeshi migrant workers, secured the third position with remittances amounting to $328.84 million.
The United Kingdom (UK) followed in fourth place, contributing $305.52 million in remittances, while Malaysia ranked fifth with expatriates sending $183.87 million in February. The other top remittance-sending countries were Kuwait, Oman, Italy, Qatar, and Singapore.
According to the latest BB data, Bangladeshi expatriates sent a total of $2,528 million in remittances in February, marking a 25 per cent increase compared to the same month in the previous year. In February 2024, wage earners had sent $2,022 million in remittances.
With this latest inflow, the year-on-year growth of remittances reached 23.8 per cent in the first eight months (July to February) of the ongoing fiscal year (FY25). During this period, the country received a total of $18,490 million, compared to $14,935 million in the previous year.
In its monthly report on remittance inflows, BB highlighted the crucial role of remittances in the current political and economic landscape, which has been affected by inflation, exchange rate fluctuations, and rising import costs. It stated that remittances have provided much-needed financial relief, strengthening foreign currency reserves and supporting millions of households across the country.
“The steady flow of remittances has been a stabilising factor, contributing to poverty reduction, improved living standards, and regional development,” the report stated.
“In the context of the ongoing post-pandemic economic recovery and political transitions, remittances are even more critical in sustaining economic growth, ensuring liquidity in the banking sector, and reducing reliance on external borrowing,” it added.
The UAE had been the largest source of remittances during this period, followed closely by the US. The BB report emphasised the significance of remittances from Bangladeshi expatriates, noting that they remain one of the country’s largest sources of foreign currency.
To further enhance the economic benefits of remittances, the BB suggested implementing targeted strategies to support migrant workers, improve financial inclusion for recipients, and address the needs of expatriate workers abroad.
