Forex reserves surge to $26b

Foreign exchange reserve stood at $26 billion as per BPM6, according to Bangladesh Bank data released tonight (28 August).

Earlier on 8 July, reserve was $24.45 billion.

Bangladesh’s reserves surged to a record high of $48 billion in August 2021 during the pandemic-led economic shutdown. However, reserves started to fall gradually in the post-pandemic period driven by a spike in import payments.

Forex reserve erosion persisted until 5 August 2024. However, following the political shift, reserves began to rise, driven by increasing remittance inflows. Additionally, the Bangladesh Bank’s decision to halt dollar sales from reserves contributed to the upward trend.

Bangladesh received a record $2.64 billion in remittances in December last year, making it the highest remittance inflow for a single month in the country’s history.