Bangladesh’s forex reserves rise to $30.51 billion amid remittance surge and loan inflows

Bangladesh’s foreign exchange reserves rose to $30.51 billion on Thursday, marking a significant improvement in the country’s external financial position, according to data from Bangladesh Bank.

However, central bank officials noted that under the IMF’s Balance of Payments and International Investment Position Manual (BPM6), the reserves stand at $25.51 billion. Of this, the usable portion is calculated at $19.80 billion.

The rise in reserves is largely attributed to a surge in remittance inflows through formal banking channels, a trend that gained momentum following the recent change in government after the Awami League’s exit from office. This uptick has eased pressure on the foreign exchange market, providing much-needed stability.

Officials also highlighted that Bangladesh Bank has not sold any US dollars from its reserves over the past 10 months. The improvement is further supported by over $5 billion in external loans secured for budgetary support, debt servicing, and reforms in banking and revenue administration.

In addition, the International Monetary Fund is expected to release another $900 million, based on the country’s current repayment capacity. Further inflows of around $1.5 billion from the World Bank, AIIB, Japan, and the OPEC Fund are also anticipated by the end of the month.

If these expected disbursements materialise, the reserves could climb to approximately $32 billion, officials projected.