Dhaka: Bangladeshi expatriates in the United States sent home the highest remittance, amounting to US$491.26 million in February, according to Bangladesh Bank (BB) data. This marks a significant shift as the US surpassed the United Arab Emirates (UAE), which had long been the leading source of expatriate income for Bangladesh.
According to Bangladesh Sangbad Sangstha, the political changeover in August contributed to the rise in remittance inflows from the US. In February, the UAE was in second place with $334.94 million in remittances sent to Bangladesh. Meanwhile, expatriates in the Kingdom of Saudi Arabia sent around $328.84 million, making it the third-largest remittance source for the country.
Bangladesh also received $305.52 million in remittances from expatriates in the United Kingdom, placing it fourth, while Malaysia ranked fifth with $183.87 million. The remaining top 10 countries contributing to Bangladesh's remittance inflows include Kuwait, Oman, Italy, Qatar, and Singapore.
According to the latest BB data, expatriate Bangladeshis sent a total of US$2,528 million in remittances in February, reflecting a 25 percent increase from the same month the previous year. In February 2024, wage earners remitted $2,022 million to the country. The year-on-year growth in remittances reached 23.8 percent for the first eight months of the fiscal year 2025, with a total of $18,490 million received compared to $14,935 million the previous year.
The BB's monthly report on remittance inflows highlights the critical role of remittances in the current political and economic environment, characterized by inflationary pressures, exchange rate fluctuations, and rising import costs. Remittances have bolstered foreign currency reserves and supported millions of households, providing much-needed relief.
"The steady flow of remittances has been a stabilizing factor, contributing to poverty reduction, improved living standards, and regional development," stated the report. It emphasized the importance of remittances in sustaining economic growth, ensuring liquidity in the banking sector, and reducing reliance on external borrowing amid ongoing economic recovery and political transitions.
The BB report also underlined the significance of remittances from Bangladeshi expatriates, noting that they are one of the largest sources of foreign currency for the nation. It suggested targeted strategies to support the migrant workforce, enhance the economic benefits of remittances, and improve financial inclusion for recipients.
Abdul Quaium Chowdhury, Deputy Managing Director of Premier Bank PLC, told BSS that the upward trend in remittances is due to government measures to streamline legal channels, encouraging non-resident Bangladeshis (NRBs) to send money home.