Bangladesh’s foreign currency reserves have declined slightly after the central bank settled payments through the Asian Clearing Union (ACU), although strong remittance inflows continue to underpin the market. The Bangladesh Bank has maintained its purchases of US dollars, utilising the steady inflow of funds from overseas workers to support reserve levels.

Prior to ACU settlements for January–February, reserves stood at $35.49 billion. Following payments of $1.37 billion, the total reserves fell to $34.10 billion. Using the IMF’s BPM6 methodology, the reserves are recorded at $29.38 billion.

Historical Context

The nation’s foreign reserves reached a record $48 billion in August 2021. Subsequent large-scale dollar sales led to a steady decline, reaching $20.48 billion before the previous government left office. Since the interim government took charge, tighter control over illicit money outflows has encouraged remittances through formal channels, helping to rebuild reserves.

Remittance Growth

From the start of the current fiscal year until 7 March, expatriates sent $23.53 billion in remittances, compared with $19.26 billion in the same period last year, marking an increase of over 22 per cent. This sustained inflow, following nearly 27 per cent growth in the previous fiscal year, has played a vital role in maintaining the taka-dollar rate at approximately BDT 122 per USD.

Economists highlight that the combination of disciplined external payments, growing remittances, and active market intervention has helped stabilise Bangladesh’s foreign reserves and exchange rate. Continuous monitoring of ACU obligations and legal remittance channels remains crucial for sustaining reserve adequacy in the months ahead.