Forex reserves hit $34 billion, highest since 2023

Bangladesh’s foreign exchange reserves have hit a new milestone as of Monday, reaching the highest mark since the IMF-prescribed calculation method was launched in July 2023.

Under the IMF’s BPM6 calculation method, the reserves are valued at approximately $29.48 billion.

Gross reserves crossed $34 billion, hitting the highest mark since November 2022, said Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, on Monday.

This growth is largely attributed to a sustained surge in inward remittances and strategic stability in the foreign exchange market.

While reserves peaked at an all-time high of $48 billion in August 2021, they faced a sharp decline due to money laundering and economic instability, falling to $20.48 billion at the time of the previous government’s fall.

The current recovery marks a significant turnaround for the nation’s economy.

Following a strong December, expatriates sent over $3 billion in January alone. This momentum has carried into February, with $1.03 billion arriving in the first eight days.

Central bank sources indicate that the current leadership has managed to stabilise the exchange rate at approximately Tk122 per US dollar. Notably, the new governor has not sold a single dollar from the reserves since taking office, allowing the stockpile to grow sustainably.