Bangladesh Foreign Exchange Reserves Rise To $34.82bn

Bangladesh’s foreign exchange reserves have increased further, with the country’s gross reserves reaching US$34.82 billion, according to the latest data released by Bangladesh Bank.

The central bank confirmed that total foreign currency reserves stood at US$34.82183 billion as of 3 June. The information was disclosed on Wednesday by Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan.

According to the latest figures, the country’s gross foreign exchange reserves rose from US$34.76699 billion recorded on 1 June to US$34.82183 billion on 3 June. The increase reflects a rise of approximately US$54.84 million over the two-day period.

Bangladesh Bank also reported the reserve position under the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), which is considered a more internationally comparable measure of reserve holdings.

Under the BPM6 methodology, Bangladesh’s foreign exchange reserves stood at US$30.16060 billion as of 3 June. This represents an increase from US$30.10761 billion recorded on 1 June, indicating growth of approximately US$52.99 million during the same period.

The latest reserve figures are as follows:

Gross reserves represent the total foreign currency assets held by the central bank and are often used as a headline measure of a country’s external financial strength. However, Bangladesh Bank and international financial institutions also place importance on the BPM6 measure, which follows IMF guidelines for reporting reserve assets.

The BPM6 framework provides a more standardised assessment of a country’s reserve position by excluding certain assets that may not be readily available for balance-of-payments purposes. As a result, the BPM6 figure is generally lower than the gross reserve figure.

The central bank noted that net reserves are calculated in accordance with the IMF’s BPM6 methodology. Net or usable reserves are derived after deducting short-term external liabilities and other obligations from the total reserve holdings. This calculation provides a clearer picture of the foreign currency resources that are immediately available to support external payments and financial stability.

Foreign exchange reserves play a crucial role in managing a country’s external sector. They help finance import payments, meet foreign debt obligations, support exchange rate stability and strengthen confidence in the economy’s ability to withstand external shocks.

The latest increase, although modest, continues the recent upward movement in Bangladesh’s reserve position. According to Bangladesh Bank’s data, both gross reserves and BPM6 reserves recorded gains between 1 June and 3 June, indicating an improvement in the country’s foreign currency holdings during the period.

As of 3 June, Bangladesh’s gross foreign exchange reserves stood at US$34.82 billion, while reserves measured under the IMF’s BPM6 methodology reached US$30.16 billion, according to the central bank’s latest update.