March 13, 2026
THIMPHU – Remittances from Bhutanese living abroad have increased sharply over the years, becoming an increasingly important source of foreign exchange and household income.
In 2025, inward remittances more than doubled to USD 342.9 million, up from USD 164.4 million in 2024, according to the Royal Monetary Authority (RMA).
The largest share of remittances in 2025 came from Australia at USD 253.3 million, followed by the United States with USD 23.5 million and Kuwait with USD 19.3 million.
In 2021, the inward remittances stood at USD 108.74 million.
According to the RMA’s annual report, inward remittances increased by 69 percent, rising from USD 143 million in fiscal year 2023-24 to USD 241.8 million in fiscal year 2024-25.
The rise was largely driven by higher transfers through formal banking channels and improved digital remittance platforms.
The Authority also introduced initiatives to promote formal remittance flows. Programmes such as Remit Bhutan and partnerships between domestic banks and financial institutions in Australia have made it easier and more secure for Bhutanese living abroad to send money home.
Economists say that remittance growth reflects both the expanding Bhutanese diaspora and improved financial transfer systems.
Increase in remittances helps strengthen the foreign exchange position.
“Remittances have become an important buffer for the country’s external sector,” an economist said. “It provides steady inflows of convertible currency and helps support domestic consumption, especially as the economy adjusts after the pandemic.”
A report from the finance ministry also stated that some of the increase could be linked to transfers sent by Bhutanese abroad to support family investments, including subscriptions to the Nation Building Bond and the Gelephu Mindfulness City related initiatives.
Higher remittance inflows also increased the country’s net foreign assets.
According to the ministry’s report, stronger convertible currency inflows from remittances and hydropower-related proceeds pushed net foreign assets to Nu 190.02 billion, about 38.24 percent higher than the previous quarter’s projection.
While remittances are providing important economic support, economists warn that the growing outflow of young Bhutanese workers could have long-term consequences for the domestic economy.
“Remittances may support consumption and investment for many households, but the migration of young workers also reduces the country’s productive capacity and may worsen labour shortages in key sectors such as construction and services,” the economist said.
Meanwhile, outward remittances declined during the same period.
In fiscal year 2024-25, outward remittances fell by 22 percent to USD 58.1 million compared with the previous year. These payments included transfers by Bhutanese businesses and individuals for services imports, education expenses abroad, and remittances sent home by Indian labourers working in Bhutan.
More than 90 percent of outward remittances went to India, mainly from Indian workers employed in Bhutan’s construction and manufacturing sectors.
Officials partly attribute the decline to a reduction in foreign workers.
Figures from the Department of Labour shows that the number of foreign workers in the construction sector fell by about 15 percent in fiscal year 2024-25 compared with the previous year.
The total external reserves stood at USD 1.12 billion as of January this year. This is an increase of USD 11.8 million from the previous month. Foreign currency reserves accounted for 96.5 percent of the total reserves.