Gross forex reserve reaches $20 billion again after one and half months

Highlights –

• Government stopped selling dollars, aligned dollar prices with market demand
• Imports grew 1%, remittance 30%, and exports 8% during July-October
• LC openings eased

The country’s gross foreign exchange reserve reached $20 billion on 22 December after one and half months thanks to a high inflow of remittance.

Husne Ara Shikha, spokesperson of Bangladesh Bank confirmed the matter.

Earlier on 6 November, the reserve was $20 billion but it started to decline slowly and dipped below $19 billion in the first week of December.

The foreign exchange reserve remained stable between $19 billion and $20 billion under the interim government due to raising the dollar price to Tk120 aligning with market demand.

Bangladesh Bank also stopped selling dollars from the forex reserve after the fall of Sheikh Hasina government on 5 August.

In recent weeks, rising import activities caused dollar prices to increase, with banks spending Tk127.70 per remittance dollar.

The availability of dollars, supported by strong remittance inflows, allowed banks to ease restrictions on opening Letters of Credit (LC).

Central bank data shows that imports grew by 1% during July-October of the current fiscal year, whereas it was negative 10% in FY24. During the same period, remittance surged by 30%, and exports registered an impressive 8% growth, further supporting economic activities.