Remittances from the United States jump 60% in FY25

Although recent headlines have largely focused on Bangladesh–US trade talks, a quieter but striking development has been the surge in remittances from the world’s largest economy, which jumped nearly 60% in FY25, Bangladesh Bank data shows.

Official figures reveal that Bangladeshi expatriates in the US sent home $4.73 billion in FY25 — a 59.8% increase from the previous fiscal year. This accounted for the largest country-specific share, representing about 15% of the total $30.3 billion in remittance inflows.

Sources told The Financial Express that the growth was driven by several factors, notably favourable exchange rates and government cash incentives. Remittances remain a crucial lifeline for Bangladesh’s economy, helping to stabilise the foreign exchange market, build reserves, and finance essential imports.

“A lot of factors are at play, but in my view, cash incentives and favourable exchange rates were decisive,” a senior Bangladesh Bank official said. He added that a fall in the US unemployment rate during the Trump administration strengthened job security and incomes for Bangladeshi migrants, enabling them to send more money home.

The official also pointed to a structural shift, with more migrants moving away from informal hundi networks and opting for faster, safer banking channels — encouraged by tighter regulation and competitive bank rates.

Saudi Arabia was the second-largest source of remittances in the same period, contributing $4.26 billion, while inflows from the United Arab Emirates fell by 10.1%. Remittances from the UK rose 13.4% to $3.2 billion.

It is estimated that some 13 million Bangladeshis are engaged in employment or other economic activities abroad.