Bangladesh’s gross foreign exchange reserves on Tuesday (May 6) stood at $27.44 billion, according to Bangladesh Bank.
By the more commonly used and accepted reserve calculation around the world, that excludes "encumbered reserves", the reserve figure is $22.06 billion, after paying different payments and energy bills.
It has climbed back up past $22 billion after 7 months.
The foreign exchange reserve is gaining stability gradually after the political changeover on August 5, 2024, as trust rebounds in the economy and banking system.
In the first 10 months of the current fiscal year 2024-25 (July to April), the total inward remittance is $24.54 billion. In comparison, the remittance inflow during the corresponding period of the previous fiscal year (FY2023- 24) was $19.11 billion. This indicates a growth of 28.3 percent in remittance flow during this time.
Analysts believe that this continued momentum in expatriate income, even after Eid-ul-Fitr, brings relief to the country's economy. March already saw a record $3.29 billion in remittances, the highest ever in a single month in the country's history.
Dollar rate for remittance soars as banks compete for overdue payments
Ahead of Eid-ul-Adha, Bangladesh expected another record of inward remittance. So the reserve and exchange rate of the dollar get stability. At the same time, local currency taka is strengthening gradually.
Notably, every month of the current fiscal year (FY2024- 25) has seen remittances exceeding $2 billion, reflecting the trust of migrant workers in formal banking channels.
According to Bangladesh Bank, the exchange rate of the US dollar is decreasing against the taka due to reduced pressure to pay import bills. Bankers believe the price may fall further in the coming days.
In the last week of April, banks had to pay between Tk 122.50 and Tk 122.60 to purchase remittance. In contrast, even in the second week of April, banks were paying between Tk 123 and Tk 123.20 for the same. This indicates a decrease of Tk0.50 to Tk0.70 in the dollar's price within two weeks in April.