Just days before Bangladesh’s 13th national parliamentary election and the associated referendum scheduled for 12 February, the country’s foreign currency reserves have exceeded the $34 billion mark, signalling robust financial stability at a politically sensitive moment. Economists and policymakers regard this milestone as a key indicator of the nation’s macroeconomic resilience.
Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, stated on Monday, 9 February, that rising remittances from overseas workers were the primary driver of the reserve accumulation. According to the latest figures, the country’s total foreign reserves currently stand at $34.06 billion, while the International Monetary Fund’s BPM6 methodology places reserves at $29.48 billion.
Remittances have played a pivotal role in this increase. In January alone, Bangladesh received approximately $3.17 billion in remittances, and in the first eight days of February, inflows have already exceeded $1 billion. Alongside these inflows, strategic dollar purchases by the central bank and additional dollar sales by commercial banks have further bolstered reserves.
To maintain a balance between export earnings and domestic currency supply, and to stabilise the exchange rate, Bangladesh Bank continues to purchase dollars from commercial banks. On Monday, 19 banks sold $209 million to the central bank through the Multiple Price Auction (MPA) system, with the dollar cut-off rate set at BDT 122.30 per USD.
Central Bank Dollar Purchases: Fiscal Year Overview
| Fiscal Year | Dollar Purchases from Banks (USD Billion) | Reserve Impact |
|---|---|---|
| 2025–26 (Current) | 4.73 | Significant growth |
| 2023–24 | 1.00 | Maintained market stability |
| 2022–23 | 1.00 | Preserved reserves |
| 2021–22 | 1.00 | Limited impact |
Over the past three fiscal years, Bangladesh Bank sold approximately $34 billion to support market liquidity: $7.6 billion in 2021–22, $13.5 billion in 2022–23, and $12.79 billion in 2023–24, while purchases from commercial banks during the same period totalled only $1 billion.
Arif Hossain Khan noted that current dollar supply exceeds immediate demand, and uncontrolled fluctuations could artificially depress the exchange rate. By actively purchasing dollars from the market, the central bank is maintaining stability, safeguarding both remittances and the export sector, and reinforcing the nation’s foreign currency reserves ahead of a critical electoral period.