Inward remittance in the first three months of 2025 hits 55.3 M

As of March 2025, remittances from Bhutanese Living Abroad (BLA) totaled USD 55.3 million. The largest share, USD 35.7 million, came from Australia, followed by USD 5.0 million from the USA and USD 4.4 million from Kuwait.

In the first three months, the country received a total of USD 55.3 million in remittances, compared to USD 35.9 million during the same period of 2024. This marks an increase of 48.5% from the first three months of 2024.

According to the Royal Monetary Authority (RMA) monthly statistical bulletin, January recorded USD 18.5 million, which is a 59.5% increase from USD 11.6 million of the same month of last year. Similarly, in the months of February and March, Bhutanese living abroad collectively remitted USD 18.4 million each, which is a significant increase of 10.2% and 142.1% compared to the same months of 2024.

Australia emerged as the top source of remittances, with contributions rising from USD 11.8 million in January to USD 12.2 million in March this year. In the last three months, Bhutanese in Australia contributed USD 35.7 million, while in 2024, a total of USD 106.5 million was contributed in remittances from Bhutanese in Australia.

The remittance from the United States of America stood as the second-largest source, contributing USD 4.9 million, followed by Bhutanese in Kuwait contributing USD 4.4 million in the last three months.

Bhutanese in Canada sent USD 2.2 million, in the last three months, closely followed by the United Kingdom with USD 2 million. Other countries, including the United Arab Emirates, Qatar, Singapore, Belgium, and France, collectively contributed over USD 6 million in remittances during the three-month period.

Meanwhile, the country’s foreign currency reserve increased to 886.90 USD million in March from 860.90 USD million in February of 2025. Foreign exchange reserves in Bhutan averaged 911.82 USD million from 2006 until 2025, reaching an all-time high of 1902.60 USD million in July of 2016 and a record low of 458.30 USD million in April of 2006.

The central bank attributes the increase in foreign currency reserves to robust inflows from hydropower exports, loans, grants, and remittances from Bhutanese citizens living abroad. Additionally, the central bank confirmed that the current reserve level satisfies the constitutional requirement to cover at least one year’s worth of essential imports.

As of March 2025, the country’s hydropower exports recorded Nu 402.3 million, and domestic sales amounted to Nu 1,764.8 million. During the same period, Bhutan imported 194 units of electricity, with import costs totaling Nu 639.0 million.

To facilitate remittance inflow, Bhutan provides nine channels through which remittances can be sent: Bhutan Post’s Western Union and EuroGiro, T-Bank’s T-Pay remit and Prabhu Money Transfer, Bhutan National Bank’s MoneyGram and Ria Money Transfer, Bank of Bhutan’s Ria Money Transfer and BoBit, and Bank Transfer (SWIFT).

Remittances have been one of Bhutan’s main generators of convertible currency. Moreover, Article 14, Section 7 of the Constitution states that a minimum foreign currency reserve that is adequate to meet the cost of not less than one year’s essential imports must be maintained.

Nidup Lhamo  from Thimphu