In a positive development for Bangladesh's economy, the country’s foreign exchange reserves have surpassed $25 billion, reaching $25.44 billion by the end of March, according to data released by Bangladesh Bank on 27 March.
This surge comes on the back of record remittance inflows this month, which totalled $2.94 billion in the first 26 days of March – the highest monthly remittance figure in the nation's history.
While the gross reserves have surged to over $25 billion, the net reserves, as per the International Monetary Fund’s (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), currently stand at $20.29 billion.
This figure is calculated by subtracting short-term liabilities from the gross reserves.
Earlier in March, Bangladesh paid $1.75 billion to settle import bills through the Asian Clearing Union (ACU), which temporarily reduced the gross reserves below $25 billion and net reserves below $20 billion.
The reserves had dropped to $19.75 billion after this payment but have since rebounded above the $20 billion mark.
The substantial increase in remittances has played a crucial role in replenishing the reserves, providing significant relief to the economy, especially ahead of the upcoming Eid festivities.
Central bank officials remain optimistic that this positive trend in remittance inflows will help stabilise the reserves further.
Arif Hossain Khan, the spokesperson and executive director of Bangladesh Bank, confirmed the latest reserve figures and expressed confidence that the country's external financial position remains strong despite ongoing challenges.
The timely surge in remittance inflows has provided a much-needed boost to the economy, offering a sense of optimism as Bangladesh navigates its financial landscape in the lead-up to Eid.
