Bangladesh's foreign exchange reserves have risen significantly and now stand at $26.73 billion, reflecting a strong turnaround following the recent political shift in the country.
The key force behind this growth is the surge in remittance inflow from expatriates, with consistent performance for the past several months. According to the latest update from Bangladesh Bank released on April 20, the gross reserve has jumped to record high at $26.73bn as of April 17.
However, under the IMF's BPM6 accounting method, which deducts short-term liabilities and unusable assets, the reserve stands lower at $21.39 billion. And when accounting for only the immediately usable funds excluding IMF's SDR holdings, banks' clearing balances, and dues to the Asian Clearing Union-the usable reserve drops further to around $16 billion.
Despite the different measurements, the momentum remains positive. Remittance has played a game-changing role. In just the first 12 days of April, the country received $1.052 billion in remittances. In March, remittance inflows hit an all-time high of $3.29 billion, marking the highest monthly figure in Bangladesh's history.
The trend has been consistent throughout the fiscal year. Starting from July 2024, every single month has seen over $2 billion in remittances. From July to March, monthly receipts ranged from $1.91 billion to the record-breaking $3.29 billion in March.
The new interim government's assumption of office has coincided with this uninterrupted streak, suggesting improving confidence and stability.
According to global economic standards, a country should have reserves equivalent to at least three months of import expenses. Bangladesh's current reserve level surpasses that benchmark, ensuring the ability to meet external payment obligations beyond that threshold.
This steady inflow is not just numbers it's fuel for macroeconomic strength. The upward trajectory in reserves confirms that the economy is not only stabilizing but gaining muscle.
