Foreign Reserves Edge Higher

Bangladesh’s foreign exchange reserves have recorded a further modest increase, reflecting continued stability in the country’s external sector position, according to the latest figures released by Bangladesh Bank.

As of 3 June, the country’s gross foreign exchange reserves stood at US$34,821.83 million, equivalent to approximately US$34.82 billion, the central bank confirmed. The update was provided by Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, on Wednesday.

In addition to the gross reserves, the usable reserves calculated under the International Monetary Fund’s Balance of Payments and International Investment Position Manual (BPM6) standard stood at US$30,160.60 million. This figure is widely used for assessing a country’s immediate capacity to meet external payment obligations, as it excludes certain non-liquid or encumbered components.

A comparison with earlier data indicates a gradual upward movement. On 1 June, gross reserves were recorded at US$34,766.99 million, while BPM6-compliant usable reserves stood at US$30,107.61 million. Within just two days, both indicators showed a slight but positive increase.

Reserve Movement (Recent Comparison)

The steady movement in reserves is being viewed as an important indicator of macroeconomic resilience. Foreign exchange reserves play a critical role in maintaining external stability, particularly in financing import payments, stabilising the currency market, and ensuring uninterrupted supply of essential goods such as fuel, food items, and industrial raw materials.

Economists generally note that a stable or rising reserve position helps strengthen confidence in the economy, especially at a time when many developing economies face external pressure from global interest rate fluctuations and import cost volatility.

Alongside the improvement in reserves, remittance inflows have also shown notable strength. In May, expatriate Bangladeshis sent home approximately US$3.425 billion, marking one of the highest monthly inflows in the country’s history. This robust inflow has provided substantial support to the foreign exchange market and has been a key contributing factor behind the recent stability in reserves.

For the first eleven months of the 2025–26 fiscal year (July to May), total remittance inflows reached nearly US$32.76 billion, underscoring a sustained upward trend. This consistent flow of foreign currency from overseas workers continues to play a vital role in balancing external accounts and supporting liquidity in the banking system.

Overall, the latest data points to a cautiously positive external position for Bangladesh, with both reserves and remittance inflows demonstrating resilience. While global economic conditions remain uncertain, the current trajectory suggests a degree of stability in the country’s foreign exchange fundamentals, supported by steady inflows and prudent reserve management.