Reserves Back at $30 Billion, Pressure Eases on Foreign Exchange Market

There is once again some relief in the country's foreign exchange reserves. As of the end of Thursday, total reserves stood at $30 billion. However, under the IMF’s BPM6 accounting method, the reserve amount is recorded at $24.99 billion.

According to Bangladesh Bank sources, the reserve stood at $31.72 billion as of June 30. This means that within 24 days, reserves have dropped by about $1.72 billion. Under the BPM6 method, the decrease during the same period was $1.71 billion.

On July 8, Bangladesh Bank paid $2.01 billion to the Asian Clearing Union (ACU) for import dues for the months of May and June. After this payment, reserves dropped to $29.52 billion, and under BPM6 accounting, to $24.45 billion.

Positive Trends in Remittances and Exports

Following the fall of the Awami League government, expatriates have increased remittance inflows through legal channels. In the recently concluded 2024–25 fiscal year, remittances reached $30 billion — 26% higher than the previous year. During the same period, exports also grew by 8.5%, another major source of foreign income.

This increase in foreign currency inflow from remittances and exports has eased pressure on the market. For the past 10 months, the central bank has not sold dollars from the reserves. Instead, it has recently begun purchasing dollars from commercial banks through auctions to further stabilize the reserves.

Lower Dollar Demand, Declining Exchange Rate

Due to rising remittance and export earnings, and reduced demand for imports, pressure on the dollar has decreased. As a result, the exchange rate of the dollar against the taka has declined slightly. However, to maintain exchange rate stability this month, Bangladesh Bank is purchasing dollars from the market through auctions.

Foreign Loan Support Incoming

In addition, several billion dollars in foreign loans are expected to arrive soon as part of budget support, revenue sector reforms, and banking sector reform initiatives. These funds are expected to further strengthen the reserves in the near future.

Overall, after prolonged pressure, the country’s foreign exchange market appears to be heading toward some degree of stability, according to concerned stakeholders.