Remittance Inflows Increase from UAE and UK in July-March FY24; Decrease from Saudi Arabia and US

Remittance inflows to Bangladesh have reached a record high of $17.07 billion in the first nine months of the current fiscal year, marking a significant increase of around $1 billion compared to the same period in the previous fiscal year. This surge has been primarily driven by substantial increases in remittances from countries such as the UAE, Singapore, and the UK, while experiencing declines from the USA and Saudi Arabia.

The UAE has emerged as the top remittance source country for Bangladesh in the current fiscal year, with remittance outflows reaching $3.27 billion, a 48% increase from the previous year. Stakeholders attribute this rise to the potential repatriation of laundered money. Similarly, remittance inflows from the UK have also seen a significant increase, moving the country from fourth to second place on Bangladesh’s list of top remittance sources.

However, remittance income from countries like Saudi Arabia and the USA has decreased, with the USA falling to the fourth position in the list of top remittance sources for Bangladesh. This decline has been attributed to the rising cost of living for expatriates in these countries, leading to a decrease in their savings from income.

Despite the overall increase in remittance inflows, countries such as Kuwait, Australia, South Korea, Qatar, and Japan have experienced significant decreases in remittances to Bangladesh. Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, highlighted the impact of increased living costs and restrictions on outward remittances as major factors contributing to the decline in remittances from these countries.

Overall, the surge in remittance inflows to Bangladesh reflects the complex dynamics of global migration patterns and economic conditions, with some countries emerging as key contributors while others face challenges in maintaining previous levels of remittance outflows.