US top remittance source in February
Business Desk:
Bangladeshi Diasporas in the United States (US) sent home the highest remittance amounting to US$491.26 million in February, Bangladesh Bank (BB) data showed.
Following the political changeover in August, remittance inflows from the US have seen a significant rise, enabling the US to surpass the United Arab Emirates (UAE), which had long been the leading source of expatriate income, reports, BSS.
The UAE was in the second position with a total of $334.94 million in remittances sent to Bangladesh in the previous month.
The expatriates in the Kingdom of Saudi Arabia (KSA), the country which hosts most of the Bangladeshi migrant workers, sent around $328.84 million in remittances, putting the country in third place.
Bangladesh received $305.52 million in remittances from the expatriates in United Kingdom, making it the fourth-highest remittance sender in the month, while Malaysia was in the fifth position as expatriate from Malaysia sent $183.87 million remittances in February.
The other top 10 countries for sending remittances to Bangladesh are Kuwait, Oman, Italy, Qatar, and Singapore in that order.
According to the latest BB data, Expatriate Bangladeshis sent US$2,528 million remittances in February, which was around 25 per cent higher than the corresponding month of the previous year.
The wage earners sent $2,022 million remittance to the country in February of 2024.
With the latest addition, the year-on-year growth in receiving remittances increased at 23.8 per cent for the first eight months, July to February, of the ongoing fiscal year (FY25) as the country received $18,490 million in total during the period. Last year, it was $14,935 million.
BB said in its monthly report on remittance inflows that in the current political and economic landscape, marked by inflationary pressures, exchange rate fluctuations, and rising import costs, remittances have provided much-needed relief.
The foreign currencies bolstered foreign currency reserves and supported millions of households across the country, it said.
“The steady flow of remittances has been a stabilising factor, contributing to poverty reduction, improved living standards, and regional development,” said the report.
“In the context of the ongoing economic recovery post-pandemic, coupled with 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 United Arab Emirates (UAE) was the largest source of remittance during this period, followed by the US.
The report said inward remittances from Bangladeshi expatriates are very significant for the nation… Expatriates’ remittances are one of the largest sources of foreign currency.
The BB suggested targeted strategies to support the migrant workforce, enhance the economic benefits of remittances, improve the financial inclusion of recipients, and address the needs of migrant workers abroad.
Deputy Managing Director (DMD) of the Premier Bank PLC Abdul Quaium Chowdhury said the flow of remittances into the country shows upward trend as the government has taken measures to streamline the legal channel for encouraging non-resident Bangladeshis (NRBs) to send money to the country.