Bangladesh’s economy has received a timely and encouraging lift as the country’s foreign exchange reserves continue to move upward, signalling renewed confidence at a moment marked by global financial volatility and domestic economic adjustment. The latest data released by Bangladesh Bank show that total foreign currency reserves have climbed to 32.57 billion US dollars, a figure that policymakers and economists alike see as a reassuring sign of improving external financial resilience.
This development was officially confirmed on Thursday, 18 December, by Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank. Addressing journalists, he explained that the gradual rise in reserves is the outcome of several reinforcing factors, including a steady flow of remittances from expatriate Bangladeshis, a slow but noticeable recovery in export earnings, and more disciplined management of foreign exchange transactions. He stressed that the central bank continues to monitor market dynamics closely and remains prepared to take policy measures when necessary to ensure stability in the currency market.
According to the central bank’s updated figures, Bangladesh’s gross foreign exchange reserves stood at 32,573.31 million US dollars as of 18 December. When measured under the International Monetary Fund’s Balance of Payments and International Investment Position Manual, Sixth Edition (BPM-6), the reserve level currently stands at 27,875.70 million US dollars. Just one day earlier, on 17 December, gross reserves were recorded at 32,482.88 million dollars, while the BPM-6-adjusted figure stood at 27,817.86 million dollars. Although the numerical increase within a single day may seem marginal, economists argue that it reflects a broader trend of improved external balance and prudent financial management.
Analysts note that pressure on the country’s reserves has eased due to a combination of policy-driven restraint in import spending, reduced non-essential expenditures, and greater discipline in servicing foreign debt obligations. These steps have helped slow the outflow of foreign currency at a time when many developing economies are struggling to manage similar pressures. At the same time, remittances sent home by Bangladeshi workers abroad continue to serve as a vital backbone of reserve accumulation, providing consistent inflows even amid global uncertainty.
Export earnings, while still facing challenges from subdued global demand, have shown signs of stabilisation, further strengthening the country’s external position. Coupled with Bangladesh Bank’s cautious monetary policy, careful regulation of dollar supply, and tighter oversight of the banking sector, these factors have contributed to a more balanced and predictable foreign exchange environment.
It is worth noting that the net, or usable, foreign exchange reserve is calculated in accordance with the IMF’s BPM-6 methodology. This approach deducts short-term foreign liabilities, scheduled debt repayments, and other external commitments from gross reserves to present a clearer picture of a country’s true reserve strength. International financial institutions generally regard this net figure as the most reliable indicator of a nation’s capacity to meet its external obligations.
Looking ahead, economists remain cautiously optimistic. If the upward momentum in reserves can be sustained, it is expected to ease pressure on import financing, support timely repayment of foreign loans, and strengthen Bangladesh’s standing in international financial markets. More importantly, stronger reserves could help restore investor confidence and reinforce macroeconomic stability, offering hope that the economy is gradually moving towards a more secure and balanced path.