Bangladesh's forex reserves cross $25 billion ahead of Eid
This comes after a significant increase in remittance inflows, which reached $2.94 billion in the first 26 days of March – the highest for any month in the country’s history
Highlights
- Reserves hit $25.44 billion before March ends
- Remittances reach record $2.94 billion in 26 days
- Net reserves stand at $20.29 billion under IMF rules
- $1.75 billion ACU payment briefly lowered reserves
Bangladesh Bank has delivered positive news regarding the country's foreign exchange reserves, as it surpassed $25 billion before the end of March, following a record inflow of remittances this month.
According to data released by the central bank on Thursday (27 March), the country's gross reserves have risen to $25.44 billion.
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This comes after a significant increase in remittance inflows, which reached $2.94 billion in the first 26 days of March – the highest for any month in the country's history.
However, as per the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh's net reserves currently stand at $20.29 billion.
The net reserve figure is calculated by deducting short-term liabilities from the gross reserves.
On March 9, Bangladesh paid $1.75 billion to settle import bills through the Asian Clearing Union (ACU), which temporarily reduced the gross reserves to below $25 billion and the net reserves to below $20 billion.
After this payment, the country's reserves under the BPM6 standard had dropped to $19.75 billion but have since rebounded above the $20 billion mark.
The surge in remittances has played a crucial role in replenishing the reserves, providing much-needed relief to the economy ahead of Eid. Central bank officials remain optimistic that continued inflows will help stabilise the foreign exchange reserves further.
Speaking to the media, Bangladesh Bank's spokesperson and Executive Director, Arif Hossain Khan, confirmed the latest reserve figures and expressed confidence in the country's external financial position.
With the upcoming Eid festivities, the record remittance inflows have brought a timely boost to the economy, offering a sense of optimism amidst ongoing financial challenges.
