Gross forex reserves cross $33b after three years

Bangladesh's gross foreign exchange reserves crossed $33 billion for the first time in three years since fiscal year 2021-22, a sign of the country's increasing capacity to cover import bills for a longer period.

Readily usable reserves, as per the calculation method of the International Monetary Fund (IMF), stood at $28.51 billion on December 30, 2025, up from a week earlier, Bangladesh Bank (BB) said yesterday.

It means that Bangladesh can cover import payments for more than five months. The country's monthly import bill is more than $5.50 billion, according to BB data.

Forex reserves, which had crossed $48 billion in August 2021, began to fall amid pent-up demand for imports following the removal of Covid restrictions and rising commodity prices in the global market after Russia's invasion of Ukraine.

In May 2024, overall dollar stock holdings stood at $24 billion, raising concerns about the country's capacity to clear international payment obligations.

The turnaround in forex reserves began after the fall of the Awami League government in August last year, as remittance inflow increased.

The BB, which had earlier sold the greenback to support the value of the taka, began purchasing US dollars from banks at the start of the current fiscal year 2025-26 to curb the depreciation of the greenback.

The BB has bought $3 billion so far this fiscal year.

During the July-November period, remittance inflow grew 17 percent year-on-year to $13 billion. Export growth was slightly higher, while imports also gained momentum, according to official data.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said the foreign exchange reserves are increasing mainly due to higher remittance inflows and subdued imports. As a result, the demand for foreign currency has remained low while supply is relatively high.

Higher reserves strengthened confidence in the exchange rate, helping limit depreciation, Hussain added.

He said demand for private investment may increase after the general election scheduled for next month, but the high level of reserves will likely prevent significant pressure on the exchange rate.