The country's foreign exchange reserves have surpassed $26 billion, driven by increased loans and grants from donor agencies as well as higher expatriate income. This positive trend reflects steady growth in the nation’s financial stability.
On Sunday, December 29, Bangladesh Bank Spokesperson and Executive Director Husne Ara Shikha confirmed this information. She highlighted that the recent addition of foreign grants and strong remittance inflows are the primary contributors to this increase in reserves.
According to the latest data from the central bank, the gross foreign exchange reserves as of December 29 stand at $26.09 billion. Using the International Monetary Fund’s (IMF) BPM-6 accounting system, the reserves are valued at $21.33 billion. Even under this stricter accounting standard, the reserves have shown growth compared to previous figures.
In addition to gross and BPM-6 reserves, there exists another classification known as "expendable reserves." Unlike other reserve figures, Bangladesh Bank does not officially disclose data on expendable reserves. These reserves are calculated by excluding IMF's Special Drawing Rights (SDR), foreign currency in the foreign exchange clearing accounts of banks, and Asian Clearing Union (ACU) bills.
According to sources, the country’s actual expendable reserves currently stand at approximately $15 billion. At a monthly import expense of $5 billion, these reserves are sufficient to cover three months of imports. This aligns with the global standard that a country should maintain reserves equivalent to at least three months of import costs.
In the first 28 days of December, remittances worth $2.42 billion were received through formal channels, translating to Tk 29,400 crore in local currency (at Tk 120 per dollar). This represents an average daily remittance inflow of $86.4 million, a significant contribution to the overall reserve growth.
The interim government has maintained exchange rate stability by aligning foreign currency supply with market demand. The dollar price had been steady at Tk 120 for a considerable period. However, last week saw a slight increase in the dollar price due to heightened demand, which further boosted remittance inflows and, consequently, the reserves.
It is important to note that net reserves are calculated according to the IMF’s BPM-6 measurement methodology. Net reserves are determined by subtracting short-term liabilities from gross reserves, providing a clearer picture of the actual financial capacity of the country.