Remittance and Exports Drive Significant Success in Bangladesh’s Foreign Transactions: Highest BOP Surplus in Three Years

Bangladesh’s foreign exchange system showed remarkable improvement in the recently concluded fiscal year 2024-25, registering a balance of payments (BOP) surplus of approximately $3.3 billion. This marks the highest surplus in the last three years, reversing a trend of persistent deficits.

According to the latest Bangladesh Bank report, the country moved from a $430 million deficit in 2023-24 and larger deficits in previous years to a strong surplus driven by robust growth in exports and remittances, positive inflows of foreign aid, and controlled monetary and fiscal policies.

Exports increased by 8.6% to about $48.3 billion, while import costs rose modestly by 2.4%, leading to a reduced trade deficit of $20.5 billion compared to $22.4 billion last year. Remittance inflows grew by 26.8%, aided by crackdowns on illegal channels and incentives for legal transfers.

Foreign reserves reached $30 billion by July 24, aligning well with international benchmarks. The exchange rate stabilized around 123 Taka per US dollar, easing pressure on importers.

Bangladesh Bank spokesperson Arif Hossain Khan noted the easing dollar pressure and highlighted the positive impact of remittance and export growth on all economic indicators.

Analysts remain optimistic that if these trends continue, Bangladesh’s foreign exchange stability will improve further in the coming fiscal year.