Forex reserves surge past $34.5 billion

Bangladesh marked a major political milestone on Tuesday as the interim government, led by Nobel Laureate Professor Muhammad Yunus, formally handed over power to a new administration under the leadership of Tarique Rahman.

Accompanying this peaceful transition was a significant economic boost; the country’s foreign exchange reserves have crossed the $34.5 billion mark.

Economic analysts view this surge as a positive indicator for the incoming government, providing much-needed stability as the nation enters a new democratic chapter.

Arif Hossein Khan, Executive Director and Spokesperson of Bangladesh Bank, confirmed the updated figures.

According to central bank sources, the primary driver for this increase is a massive spike in remittance inflows.

Gross Reserves: $34.54 billion (as of 17 February).

IMF BPM-6 Calculation: $29.86 billion.

January Remittance: $3.17 billion (the highest in a single month this year).

February Momentum: $1.81 billion received in the first 16 days of the month.

Central bank officials noted that expatriate Bangladeshis are increasingly using legal channels to send money home, significantly strengthening the nation's dollar holdings.

Due to the surplus of dollars in the banking system, there were concerns about a sharp decline in the value of the US dollar. To maintain market equilibrium and ensure stability, Bangladesh Bank has been actively purchasing dollars from commercial banks.

During the current fiscal year, FY2025-26, the central bank has purchased approximately $4.90 billion from the market. This marks a sharp reversal from previous years (2021-2024), where the bank was forced to sell nearly $34 billion to curb an unstable market.