Bangladesh`s foreign exchange reserves have surpassed the $20 billion mark for the first time in nearly two months, bolstered by a surge in remittance inflows from migrants.
According to data from the central bank, Bangladesh`s foreign exchange reserves, calculated based on the International Monetary Fund`s (IMF) methodology, reached $20.05 billion today, up from $19.87 billion just a week ago.
"This increase is largely due to a higher flow of remittances," said Husne Ara Shikha, spokesperson for Bangladesh Bank (BB).
Between July and October of the 2024-25 fiscal year, Bangladeshi expatriates sent home $8.93 billion in remittances, a 30% increase compared to the same period last year, BB reported.
The central bank also noted that the country`s gross reserves grew to $25.72 billion, up from $25.44 billion a week earlier.
Earlier in September, Bangladesh`s foreign exchange reserves were at $20.55 billion according to the IMF`s calculation method. However, reserves fell below the $20 billion threshold following a $1.37 billion payment for import bills from July and August, settled through the Asian Clearing Union (ACU), a multilateral payment arrangement for nine member countries.
BB Deputy Governor Md Habibur Rahman confirmed that the central bank has been purchasing foreign currencies from commercial banks to stabilize the forex market.
"We are continuing our foreign currency purchases. There is a healthy supply of US dollars in the market, and we will continue to buy as needed to maintain market stability," Rahman stated.
In the previous fiscal year (FY24), Bangladesh Bank sold $9.4 billion in foreign currencies to support the market.
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