Foreign reserves reaches $27.44b Taka strengthens

Staff Reporter :

Bangladesh’s gross foreign exchange reserves stood at USD 27.44 billion as of Tuesday, according to data released by Bangladesh Bank.

Using the globally accepted method of excluding encumbered reserves-funds already committed for various payments-the usable reserve level stands at USD 22.06 billion. This marks the first time in seven months that reserves have climbed back above the USD 22 billion threshold.

The recovery in foreign exchange reserves reflects growing stability in the country’s external sector following the political transition of August 2024. Confidence in the economy and banking system appears to be rebounding steadily.

Remittance inflows continue to play a pivotal role in this turnaround. In the first ten months of the current fiscal year (FY2024-25), spanning July to April, total inward remittance reached USD 24.54 billion.

This represents a 28.3 percent increase compared to USD 19.11 billion during the same period in the previous fiscal year (FY2023-24).

Analysts note that the sustained inflow of expatriate income-despite seasonal spikes around religious holidays-has provided welcome relief to the economy. March alone saw a record-breaking USD 3.29 billion in remittances, the highest ever recorded in a single month.

With Eid-ul-Adha approaching, officials anticipate another surge in remittance, further supporting reserve levels and stabilising the exchange rate.

The local currency, the taka, has also shown signs of strengthening.
Bangladesh Bank reports that every month in the current fiscal year has seen remittance inflows exceed USD 2 billion, indicating rising trust among migrant workers in formal banking channels.

At the same time, the US dollar has started to weaken against the taka, partly due to easing pressure from import payments.

In the final week of April, banks were purchasing dollars at Tk 122.50 to Tk 122.60, compared to Tk 123.00 to Tk 123.20 in mid-April-reflecting a decrease of Tk 0.50 to Tk 0.70 within two weeks.

Bankers expect the trend of taka appreciation to continue in the near term, should remittance momentum remain strong and import payments stay subdued.