Bangladesh Bank (BB) official said country’s foreign exchange reserves have crossed the $30 billion mark, while net reserves calculated under the IMF's BPM6 method have also exceeded $25 billion.
BB’s Executive Director and Spokesperson Md Arif Hossain confirmed the development on Thursday (June 27) night.
As of the end of Wednesday, the total reserve stood at $27.67 billion, and the net reserve was $22.65 billion.
However, with confirmed fund disbursements from the International Monetary Fund (IMF), Asian Development Bank (ADB), Islamic Development Bank (IDB), and the Japan International Cooperation Agency (JICA), the gross reserves rose above $30 billion.
A central bank source further said that the usable reserves now stand at $19.80 billion.
From last year, remittances sent through legal channels significantly increased.
The government, during its tenure refrained from selling dollars from the reserve during this period. Instead, over $5 billion has entered the country as loans for budget support, banking reforms, revenue reforms, and development projects.
Strong remittance inflow, effective central bank policies, and loan assistance from various development partners have all contributed to the growth in reserves—providing relief for the government.
Bangladesh's reserves had hit a record high of $48 billion in 2021 during the Covid-19 pandemic. But as inflation soared and imports resumed after the pandemic, the reserves began to fall sharply due to a rising trade deficit. The local currency also weakened against the US dollar, raising fuel and import costs.
To tackle the crisis, the central bank began selling dollars from reserves. Eventually, the government sought support from the IMF in July 2022 and applied for a $4.7 billion loan.
The IMF approved a three-and-a-half-year loan programme for Bangladesh on January 31, 2023. The package includes $3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), and $1.4 billion under the Resilience and Sustainability Facility (RSF).
Bangladesh received $476 million as the first tranche in February 2023, followed by $681 million in December the same year. The third tranche of $1.15 billion came in June 2024. In total, Bangladesh has so far received $2.31 billion from the IMF in three installments.
Additional disbursements from the IMF this week, along with funds from the ADB and JICA, contributed to the current record level of foreign exchange reserves.
MSK/
