The external financial position of Bangladesh has received a substantial boost, with gross foreign exchange reserves successfully breaching the $28 billion mark. According to Arif Hossain Khan, the Executive Director and spokesperson for the central bank, gross reserves reached $28.04 billion on 22 December 2024. This development marks a significant shift in the country’s economic narrative, providing much-needed breathing room for a nation that has grappled with currency volatility and import pressures over the past two years.
The speed of this accumulation is particularly noteworthy. Using the International Monetary Fund’s (IMF) Balance of Payments Manual 6 (BPM6) accounting standard, the country’s gross reserves were recorded at $26.51 billion as recently as 1 December. This indicates a rapid accretion of $1.53 billion within a mere 20-day window. The primary driver behind this sudden spike has been a series of strategic market interventions by the Bangladesh Bank, which has been aggressively purchasing US dollars from commercial banks through a formal auction process.
Senior officials at the central bank have confirmed that the supply of foreign currency within the domestic banking system has significantly improved. This liquidity surge is largely attributed to a robust and sustained inflow of worker remittances from abroad. To prevent a sharp drop in the exchange rate of the US dollar—which could potentially hurt export competitiveness and discourage further remittances—the central bank has opted to absorb the excess supply.
Statistical Snapshot of Reserve Growth (December 2024)
The following table illustrates the rapid improvement in the reserve position and the central bank’s market activity during the current fiscal year.
| Indicator | Value as of 1 Dec | Value as of 22 Dec | Change / Total |
| Gross Reserves (BPM6) | $26.51 Billion | $28.04 Billion | +$1.53 Billion |
| Market Purchases (Current FY) | — | >$2.50 Billion | Total FY Activity |
| Primary Inflow Source | Remittances | Remittances | Consistent Growth |
| Stabilisation Mechanism | Market Auctions | Market Auctions | Proactive Strategy |
So far in the current fiscal year, the Bangladesh Bank has mopped up more than $2.5 billion from the open market. This strategy serves a dual purpose: it replenishes the national “war chest” to meet international obligations and IMF-mandated targets, while also maintaining a stable floor for the Taka.
While the crossing of the $28 billion threshold is a positive milestone, economists remain cautiously optimistic, noting that the management of future import liabilities and the continued health of the export sector will be vital in maintaining this momentum. For now, however, the central bank’s proactive measures appear to have successfully steered the reserves back onto a path of recovery.