Forex reserves rise to $27.22b

Staff Reporter :

Bangladesh’s foreign exchange reserves have increased to $27.22 billion, according to the latest update from Bangladesh Bank.

Confirming the development on Wednesday, Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan said the upward trend in reserves continues as part of the central bank’s ongoing efforts to stabilise the foreign currency market.

Just a few days earlier, on 1 December, reserves were recorded at $26.51 billion. This means the reserves have grown by more than $700 million within the span of a week.
Central bank’s dollar purchases boost reserves
The rise comes largely from Bangladesh Bank’s active intervention in the market. In the current fiscal year alone, the central bank has purchased over $2.5 billion from commercial banks through its auction mechanism. This approach is part of a broader strategy to rebuild reserves and ensure smoother liquidity in the forex market.

Remittance recovery strengthens the dollar supply
A senior central bank official noted that the recent rebound in remittance inflows has significantly improved dollar availability in the banking system. Remittances saw a noticeable uptick in November and early December, following several policy measures such as stricter monitoring of hundi networks, incentives on remittance earnings, and improved exchange rate alignment for expatriate workers.

As the supply of dollars increased, the market began to show signs of stabilisation. To prevent the taka from gaining too sharply and to maintain a predictable exchange rate path, the central bank has been purchasing dollars through auctions.

Background: A shift from months of pressure
This improvement comes after months of sustained pressure on reserves due to high import costs, external debt repayments, and global economic volatility. Recent steps—including aligning exchange rates under the new crawling band system, curbing non-essential imports, and strengthening banking sector discipline—have helped ease pressure on the balance of payments.
With remittances improving and market reforms gradually taking hold, Bangladesh Bank expects reserves to stabilise further in the coming weeks, though officials caution that global uncertainties still warrant careful management.