Receipts rise by 23pc, with US topping contributing list

Bangladesh received US$18.49 billion in remittances during the first eight months of this fiscal year in a steady growth, with the United States topping the list of major contributors.

As usual, Dhaka division, wherein lies the nation's capital, netted the largest share of the foreign-currency inflows by official count.

The country received $3.39 billion in remittances from the United States of America (USA) during the July-February period of the fiscal year (FY) 2024-25, making it the top source, followed by the United Arab Emirates (UAE).

More than $2.61 billion was sent from the UAE, while Saudi Arabia ranked third-largest source of remittances to Bangladesh, according to the central bank's latest monthly report on worker remittance inflows for February 2025.

Over $2.32 billion was remitted from the Kingdom of Saudi Arabia during the period under review.

The United Kingdom, Malaysia and Italy followed with $1.78 billion, $1.60 billion and $1.02 billion respectively.

The flow of inward remittances grew by nearly 23 per cent to $18.49 billion during the period under review from $15.08 billion in the same period of the last fiscal year.

During the July-February period, Dhaka Division received the highest remittances, totaling $9.01 billion, which accounted for 48.74 per cent of total receipt for the nation.

Chattogram Division ranked second with $5.11 billion (27.65 per cent), while Sylhet Division secured the third position with $1.64 billion (8.88 per cent of total remittance inflows.

Among all the scheduled banks, Islami Bank Bangladesh collected the highest amount of remittance in February 2025.

Agrani Bank and Janata Bank also performed well, reflecting their extensive networks and efficient remittance services.

"Worker remittances play a pivotal role in the economy of Bangladesh, serving as one of the largest sources of foreign exchange," the Bangladesh Bank (BB) said in its report, released Thursday last.

Around 13 million Bangladeshi nationals are now working in different parts of the world.

"In the current political and economic landscape, marked by inflationary pressures, exchange-rate fluctuations, and rising import costs, remittances have provided much-needed relief by bolstering the foreign- currency reserves and supporting millions of households across the country," the central bank notes in the report.

In the context of the ongoing post-pandemic economic recovery, coupled with political transitions, remittances are even more decisive in sustaining economic growth, ensuring liquidity in the banking sector, and reducing reliance on external borrowing, it explains.

"In every year during the month of religious festivals and other occasions the remittance inflows increase. At the end month of the fiscal (June) or calendar year (December) the remittance inflows also increase," says the central bank.

Talking to The Financial Express (FE), a senior BB official said the ongoing upward trend in the inward remittance may continue up to June 30 this year.

He also says remitters "are being encouraged to send their hard-earned money through formal banking channels instead of the illegal 'hundi' system, which can help boost the country's foreign-exchange reserves".

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