Forex Reserves Top $22bn as Taka Gains, Remittance Soars

Bangladesh’s foreign exchange reserves have risen above the $22 billion mark after seven months, supported by strong remittance inflows and a strengthening local currency.

As of May 6, the gross reserve stood at $27.44 billion. Based on the international reserve calculation standard—excluding encumbered reserves—the usable reserve now stands at $22.06 billion after settling import and energy-related payments.

The reserve position has been improving steadily following the political shift on August 5, 2024, which restored confidence in the economy and the banking sector.

In the first ten months of the current fiscal year (July–April FY2024–25), inward remittances totalled $24.54 billion, marking a 28.3% increase from $19.11 billion during the same period in the previous fiscal year.

March saw a record $3.29 billion in remittances, the highest ever in a single month. With Eid-ul-Adha approaching, expectations are high for another remittance surge, contributing further to reserve stability and currency strength.

Each month of the current fiscal year has recorded over $2 billion in remittances, reflecting the continued trust of migrant workers in formal banking channels.

The exchange rate of the US dollar has also declined slightly against the taka, with reduced pressure from import payments. By the end of April, banks were purchasing dollars at Tk122.50–122.60, down from Tk123.00–123.20 in mid-April—a decline of Tk0.50 to Tk0.70 within two weeks.

Bankers believe the exchange rate may ease further if current trends persist.