Bangladesh’s forex reserves surpass $25 billion ahead of Eid

Bangladesh Bank has announced a positive milestone for the country’s foreign exchange reserves, which have crossed $25 billion ahead of the Eid-ul-Fitr celebrations.

According to data released by the central bank on Thursday (March 27), the country’s gross reserves now stand at $25.44 billion, largely due to a record inflow of remittances in March.

Remittance inflows reached an all-time high of $2.94 billion in the first 26 days of March, marking the highest monthly total in Bangladesh’s history. However, following the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual (BPM6) methodology, Bangladesh’s net reserves currently amount to $20.29 billion. The net reserve figure accounts for short-term liabilities.

Earlier in March, Bangladesh made a $1.75 billion payment to settle import bills via the Asian Clearing Union (ACU), temporarily lowering both gross and net reserves. After this payment, reserves fell to $19.75 billion but have since rebounded above $20 billion.

The surge in remittances has played a vital role in boosting the reserves, offering significant relief to the economy ahead of Eid. Bangladesh Bank officials are optimistic that the continued inflow of remittances will further stabilize the country’s foreign exchange position. Arif Hossain Khan, the central bank’s spokesperson and Executive Director, expressed confidence in the country’s external financial outlook, noting that the timely boost in reserves has brought optimism as the nation approaches the festive season.