Forex reserves rise to $19b

Staff Reporter :

Bangladesh’s foreign exchange reserves have jumped above $19 billion after nearly a month, driven by increases in remittances and export earnings.
While reserves dipped after settling liabilities with the Asian Clearing Union (ACU), they have rebounded.

According to Bangladesh Bank, the reserves currently stand at $24.75 billion, but under the International Monetary Fund’s (IMF) accounting rules, the figure is $19.20 billion. The reserves could exceed $20 billion in December if Bangladesh secures a $1 billion loan from the World Bank. Bangladesh Bank manages three types of reserve accounts: Total Reserves: Includes various funds in foreign currency, such as loans for the ready-made garment sector.
IMF Reserves: Excludes foreign currency loans and other funds.

Usable Reserves: Currently around $14 billion, which covers approximately three months of import costs-the minimum standard for economic stability.

The reserves dropped to $18.45 billion (BPM-6 standard) on November 11 after a $1.50 billion payment to the ACU for import bills from September and October. However, consistent remittance inflows and export revenues have driven the reserves back above the $19 billion mark within a month.
This is not the first time reserves have fallen below $19 billion. During previous administrations, reserves were boosted by purchasing dollars from foreign loans and banks. In contrast, the current strategy focuses on halting dollar sales from reserves while securing inflows from multiple sources, which has gradually improved the situation.