Bangladesh’s foreign exchange reserves are once again showing signs of steady recovery, marking a positive turn for the country’s external financial position. According to the latest data from the Bangladesh Bank, reserves calculated under the International Monetary Fund’s Balance of Payments and International Investment Position Manual (BPM6) methodology have climbed to nearly 31 billion US dollars.
As of Thursday (7 May), the country’s gross foreign exchange reserves stood at 35.62 billion US dollars. However, when adjusted under the IMF-recommended BPM6 framework—which excludes non-usable components and short-term liabilities—the usable reserves amounted to 30.96 billion US dollars.
Key Reserve Indicators
| Indicator | Value (USD Billion) | Description |
|---|---|---|
| Gross reserves | 35.62 | Total foreign currency holdings and external assets |
| BPM6 reserves (usable) | 30.96 | IMF-standard usable reserves after adjustments |
| Approximate level | ~31.0 | Rounded usable reserve position |
Economists and banking sector officials have described the improvement as a reassuring sign for macroeconomic stability. They attribute the upward trend primarily to a rise in remittance inflows, stable export earnings, and a gradual tightening of non-essential import expenditure. Together, these factors have eased pressure on the foreign exchange market and contributed to a more stable dollar supply environment.
Officials at the central bank note that remittances from expatriate Bangladeshis remain the most significant driver of the current recovery. A growing preference for formal banking channels has strengthened foreign currency inflows, while export earnings have continued to maintain a broadly positive trajectory.
At the same time, import demand—particularly for luxury and non-essential goods—has moderated compared to previous periods. This shift has reduced the outflow of US dollars and lessened the need for the central bank to intervene heavily in the currency market through dollar sales.
Bangladesh’s reserves had previously exceeded 48 billion US dollars in 2021, reflecting a period of strong external inflows. However, the subsequent global disruptions, including the Russia–Ukraine conflict, rising energy prices, and increased import pressures, placed significant strain on the reserve position, leading to a sharp decline over time.
In response, the Bangladesh Bank adopted a range of stabilisation measures, including tighter import controls, efforts to boost remittance inflows through legal channels, and securing external financing support from development partners. These policies have gradually helped restore stability in the external sector.
The distinction between gross and BPM6 reserves remains important. While gross reserves reflect the total foreign currency holdings of the central bank, they include components that are not immediately available for use. BPM6 reserves, by contrast, provide a more accurate picture of readily usable foreign exchange resources and are therefore closely monitored by international institutions and market analysts.
With reserves now approaching the 31 billion dollar mark under the BPM6 standard, analysts view the development as a cautiously positive signal for Bangladesh’s broader economic resilience and external sector management.