Forex reserves cross $33b, highest in 3 years

Bangladesh’s gross foreign exchange reserves have crossed $33 billion, the highest level in the past three years, buoyed by strong remittance inflows and continued dollar purchases by the central bank.

According to Bangladesh Bank (BB), remittances in the past six months amounted to $16.36 billion, reflecting a sustained upward trend since the fall of the Awami League government in August last year.

As of Tuesday, the country’s gross reserves stood at $33.18 billion. Readily usable reserves, calculated under the International Monetary Fund’s BPM6 methodology, rose to $28.51 billion as of December 30, 2025, up from a week earlier.

This marks the first time since the fiscal year 2021-22 that Bangladesh's reserves have exceeded the $33 billion threshold. 

The country first crossed this level in 2017, with reserves peaking at $48 billion in August 2021. 

However, reserves later declined sharply, falling to $26 billion at the time of the Awami League government’s fall and further to around $24 billion in May 2024, raising concerns about Bangladesh’s ability to meet international payment obligations.

With usable reserves at $28.51 billion, Bangladesh can now cover more than five months of import payments, BB officials said. The country’s monthly import bill exceeds $5.50 billion, according to central bank data.

Economists see the improvement as a positive signal for external sector stability, following a prolonged period of pressure caused by pent-up import demand after the lifting of Covid-19 restrictions and surging global commodity prices following Russia’s invasion of Ukraine.

Central bank dollar purchases continue

Bangladesh Bank has continued purchasing dollars from commercial banks amid rising remittance inflows and ongoing foreign loan disbursements. 

On Tuesday, the central bank bought $89 million through auctions from seven banks at a rate of Tk122.30 per US dollar.

With this latest purchase, total dollar buying by Bangladesh Bank in the first six months of the current fiscal year reached $3.13 billion, more than $1 billion of which was purchased in December alone.

Bangladesh Bank Governor Ahsan H Mansur recently said the country’s foreign exchange reserves are expected to reach $34-35 billion by the end of December 2025. 

He noted that the reserve buildup is being achieved through domestic market purchases rather than borrowing from the International Monetary Fund or other external agencies, describing the approach as prudent and sustainable.