Gross forex reserves hit $37b after 4 years

Bangladesh’s gross foreign exchange reserves have risen above $37 billion for the first time in nearly four years, supported by strong remittance inflows and sustained dollar purchases by the Bangladesh Bank amid improving conditions in the foreign exchange market.

According to the latest data from Bangladesh Bank, the country’s foreign exchange reserves stood at $37.053 billion as per the central bank’s own (gross) account at the end of the day on Monday.

The amount of reserves under the International Monetary Fund’s (IMF) BPM-6 calculation method stood at $32.480 billion.

Furthermore, the government expects the country’s gross foreign currency reserves to hit a record $51.4 billion by the end of next fiscal year, provided that remittance inflow is strong and interest rates high.
Earlier, on September 20, 2022, the country’s foreign exchange reserves were at $37 billion.

The rebound marks a significant recovery from the prolonged reserve pressure that followed the foreign exchange crisis of 2022 and 2023, when the Bangladesh Bank was forced to sell billions of dollars to contain sharp depreciation of the taka and meet growing demand for foreign currency.

The country’s forex reserves reached a record high of $48 billion in August 2021 but declined to $25.92 billion by July 2024.

Over the three years leading up to August 2024, local currency Taka weakened by 42 percent.
The BB sold about $34 billion from its reserve between 2021-2024 contributed most to depletion of reserve.

The reserves have been increasing continuously during the current interim government driven by increasing remittance inflow and exports.

On June 26 this year, the reserves increased to $36.08 billion according to Bangladesh Bank, which increased by about $1 billion in a few days to cross $37 billion.

According to analysts, the recent increase in export earnings, remittances, foreign loans and budget support, and the return of stability in the foreign exchange market have created a positive trend in the reserves.

Bangladesh received $35.343 billion in remittances during the first 363 days of fiscal year 2025-26 (July 2025 to June 28, 2026), registering a 17.6 percent year-on-year growth compared with US$30.047 billion received during the corresponding period of the previous fiscal year.

In the first nine months of the fiscal year, an average of 89,870 workers went abroad each month, compared to 85,340 workers a year earlier.

However, they believe that not only the amount of reserves, but also the position of net reserves suitable for use under the IMF’s BPM-6 method and the ability to meet import costs smoothly will be the most important indicators for the economy in the coming days.