Forex reserves stands at $25.44b: BB

Staff Reporter :

Bangladesh’s current foreign exchange reserve situation reflects both official estimates and adjusted calculations based on international standards.

As of the latest available data, Bangladesh’s gross foreign exchange reserves stand at $25.44 billion, according to figures released by Bangladesh Bank issued on Monday.

However, when assessed under the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual, sixth edition (BPM6), the reserves are significantly lower-reported at $20.07 billion. This methodological difference arises because BPM6 excludes certain components, such as the Export Development Fund (EDF), the Green Transformation Fund, and other encumbered assets not readily available for external payments.

The gap between the gross reserves and the IMF-compliant figure has become increasingly important in recent years.

Bangladesh had once enjoyed a robust reserve position, which peaked at over $48 billion in August 2021, a record high fueled by strong remittance inflows and lower import bills during the COVID-19 pandemic.

However, this trend reversed sharply due to surging global commodity prices, increased import spending, and a decline in remittances and export earnings. These factors put significant pressure on the reserves, forcing the central bank to intervene repeatedly in the foreign exchange market to stabilize the taka.

In response to the growing imbalance, Bangladesh entered into a $4.7 billion loan arrangement with the IMF in early 2023, part of which required greater transparency and adherence to international reserve accounting practices. As a result, the IMF-compliant reserve figure is now being reported alongside the gross reserves.

This more conservative accounting better reflects Bangladesh’s real-time capacity to meet external obligations. The current level-$20.07 billion by BPM6 standards-translates to roughly 3 to 3.5 months of import coverage, which, while manageable, underscores the need for cautious macroeconomic management, improved remittance channels, and sustainable export growth.