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Published : 30 Dec 2024, 02:33 AM
Bangladesh's foreign currency reserves have crossed the $21 billion mark, reaching their highest level since Jun 30, after a slight increase.
On Sunday, the reserves stood at $21.33 billion, according to the BPM6 (Balance of Payments and International Investment Position) method recognised by the International Monetary Fund, or IMF.
The increase of more than $1 billion over the past week is attributed to sustained remittance inflows and the release of loan funds, as confirmed by Bangladesh Bank's spokesperson Husne Ara Shikha.
She added that more loans are expected to be disbursed soon.
In addition, the central bank has been buying dollars from commercial banks in line with IMF conditions, contributing to the rise in reserves.
Earlier, reserves had dropped to $21.78 billion on Jun 30 this year, making Sunday’s figure the highest since then.
According to Bangladesh Bank's data, reserves stood at $20.16 billion on Monday, based on the BPM6 method.
The central bank's gross reserves stood at $24.98 billion on the same day, rising to $26.09 billion by Sunday.
Several officials from Bangladesh Bank said remittance inflows have shown growth for several months, along with an increase in export earnings.
Import costs have also declined compared to earlier periods, positively impacting reserves.
In the first 28 days of December, $2.42 billion arrived through banking channels.
During the same period in 2023, the figure was $1.99 billion.
Bangladesh Bank aims to raise the net reserve to $15.30 billion by the end of December to meet IMF requirements.
However, while BPM6 and gross reserve figures are published, the net reserve figures are not disclosed.
In November, reserves fell to around $18 billion due to payments made via the Asian Clearing Union, or ACU, for import liabilities.
During the COVID-19 pandemic in 2020, Bangladesh's reserves reached a record high of $48 billion.
However, since then, rising global fuel and food prices, along with the Ukraine war, have increased import costs, leading to a decline in reserves since 2022.
