Gross forex reserves rise due to remittance boost

Bangladesh’s gross foreign exchange reserves, calculated as per International Monetary Fund (IMF) guidelines, neared $21 billion again, driven by strong remittance inflows.

According to Bangladesh Bank data, reserves stood at $20.9 billion on February 20, against $19.96 billion on January 30.

According to central bank data, remittance inflow was $15.96 billion in July-January period in FY25 compared with that of $12.91 billion in the same period in FY24.

Export earnings soared by 11.58% to $28.96 billion in July-January period in FY25 compared with that of $25.96 billion in the same period in FY24.

In addition, according to conventional valuation by the Bangladesh Bank, the forex reserve increased to $26.1 billion on February 20 from $25.30 billion on January 30.

The reserve level had previously declined from $21.6 billion on January 7 to $20 billion the next day following a $1.67 billion payment to the Asian Clearing Union (ACU) for November–December import bills.

Additionally, Bangladesh Bank repaid $3.3 billion, or nearly 90%, of foreign overdue payments between August 5, 2024, and December 30, 2024, following a political change.

The central bank follows the IMF’s Balance of Payments and International Investment Position Manual, 6th edition (BPM6), for calculating gross and net international reserves.

Meanwhile, the Bangladeshi taka has continued to weaken against the US dollar, reaching Tk122 per dollar due to a dollar shortage and pressure on banks to settle import payments.

The trade deficit stood at $9.76 billion during July–December of FY25, down from $10.87 billion in the same period of FY24.

However, import payments rose by 3.5% year-on-year to $32 billion, reflecting growing demand for dollars.

Close to $2bn remittance in 22 days

Expatriate Bangladeshis sent nearly $2 billion in remittances during the first 22 days of February in FY25.

The country received $1.93 billion in remittances during the first 22 days.

As per Bangladesh Bank available data, state-owned banks brought in $831.36 million while 43 private sector banks brought $1,094.29 million remittances.

The highest $274.81 million in remittances came to the country through state-owned Agrani Bank PLC.

Islami Bank Bangladesh PLC came second as it channeled $269.21 million while Janata Bank PLC brought the third-highest amount of $186.97 million.

Bangladesh received remittances of $2.18 billion in January and $2.64 billion in December.