Remittances from US surge 60pc in FY25

Although the Bangladesh-US trade talks dominated newspaper headlines in recent months, remittance inflows from the world's largest economy surged quietly in the background, posting an impressive growth of nearly 60 per cent in FY25, according to the Bangladesh Bank data.

Official figures show remittance inflows from the US reached $4.73 billion in FY25, up 59.8 per cent from the previous fiscal year.

This marks the largest country-wise share, around 15 per cent of the total remittance inflows of $30.3 billion.

People familiar with the development told The Financial Express there are many factors behind the surge, including favourable exchange rates and cash incentives.

Remittances remain a critical lifeline for Bangladesh's economy, providing stability for the foreign exchange market, building reserves, and enabling the payments of essential imports.

"There are many reasons, but to my mind, cash incentives and favourable exchange rates played the key role," said a senior official of the Bangladesh Bank.

He added that the US unemployment rate declined during the Trump administration, which boosted job security and earnings for Bangladeshi expatriates, allowing them to remit more.

Besides, he noted that the surge reflects a structural shift as more migrants abandon the informal hundi networks in favour of faster, safer banking channels, encouraged by both regulatory enforcement and competitive exchange rates offered by banks.

Saudi Arabia stood as the second-largest source of remittances during the period under review, contributing $4.26 billion.

Remittance earnings from the United Arab Emirates, however, contracted by 10.1 per cent.

The inflows from the UK saw a 13.4 per cent boost to $3.2 billion.

It is believed that around 13 million Bangladeshis are involved in employment and other economic activities abroad.

jasimharoon@yahoo.com