Bangladesh’s foreign exchange reserves have hit a 43-month high, reaching $35.63 billion on Sunday (June 14) following a $1 billion budget support loan from the Asian Development Bank (ADB).
According to the latest data from the Bangladesh Bank, gross reserves rose from $34.59 billion last Thursday, gaining over $1 billion in just three days.
Under the International Monetary Fund’s (IMF) BPM6 calculation method, reserves reached a historic milestone of $31.07 billion, crossing the $31 billion mark for the first time.
This surge marks a major turnaround for the country's economy. Bangladesh's gross reserves peaked at over $48 billion in August 2021 but rapidly declined due to rising import costs, a strengthening dollar, balance of payments pressures, and money laundering.
By August 2024, during the fall of the Awami League government, gross reserves had plummeted to $25.92 billion, with BPM6 reserves at just $20.48 billion. The latest figures reflect a significant two-year recovery from those lows.
Central bank officials and economists attribute the stabilization to a surge in inward remittances and foreign assistance.
In the current FY26 (up to June 10), expatriate Bangladeshis sent home $33.96 billion.
This is a $5.50 billion (19.31%) increase compared to the same period last fiscal year, which also saw a 27% growth.
The combination of steady remittance inflows, positive export trends, and budget support from development partners has eased the liquidity crunch in the domestic forex market, stabilizing the greenback's supply.
While economists view this recovery as a positive sign for Bangladesh's external economic stability, they warn that maintaining these reserve levels will remain challenging due to upcoming import bills, foreign debt repayments, and global economic uncertainties.
