Record remittance inflow pushes Bangladesh’s forex reserves to $31.7 billion
NN Online:
Bangladesh’s foreign currency reserves have surged to $31.72 billion by July 2, 2025, marking a strong rebound from below $20 billion in 2024. This dramatic rise, driven primarily by record-breaking remittance inflows, signals a steady path of economic recovery under the interim government.
According to the latest data from Bangladesh Bank, the country’s gross forex reserves rose significantly within eleven months. When measured by the International Monetary Fund’s BPM6 methodology, net reserves currently stand at $26.67 billion.
The driving force behind this uptrend has been a historic inflow of remittances. In the fiscal year 2024–25 (FY25), Bangladeshi expatriates sent home $30.33 billion—a 26.80% increase from the $23.91 billion received the previous year. This is the highest remittance total in any fiscal year in Bangladesh’s history, surpassing the previous record of $24.77 billion set in FY2020–21 during the COVID-19 pandemic.
March 2025 alone saw $3.29 billion in remittances—another all-time monthly high—while each month of FY25 recorded inflows exceeding $2 billion.
Economists view this surge as a key indicator of the country’s economic stabilization. Former World Bank lead economist Dr Zahid Hussain said, “The remittance boom has eased the dollar crisis and helped restore confidence in the economy. Banks can now open letters of credit more easily, and we are returning to normalcy, though challenges remain.”
A senior official of Bangladesh Bank attributed the rise in reserves to a combination of factors: falling money laundering, robust export growth (hitting $48 billion), and increased use of formal banking channels by expatriates. The official noted that government policies and incentives played a pivotal role, along with a stable dollar exchange rate, which has hovered around Tk 122.
He further pointed out that efforts by the interim government—including reforms across financial institutions, tighter regulations, and moves to repatriate laundered funds—have contributed to this positive trend.
“The surge in dollar supply over the past two years is unprecedented,” he said, adding that structural reforms in the economy and administration were beginning to pay off.
Abdul Quaium Chowdhury, Deputy Managing Director of Premier Bank PLC, echoed the sentiment, noting that since August 2024, remittance inflows have provided critical relief to the nation’s strained macroeconomic landscape.
“This steady inflow has not only stabilized reserves but also offered breathing room for the interim government to tackle broader economic challenges,” he said.
While experts remain cautiously optimistic, they agree that the remittance-driven recovery has been a turning point for Bangladesh, signaling resilience amid past financial turbulence.
