Today marks the end of a significant chapter in the country’s political transition. The interim government led by Professor Muhammad Yunus has concluded its tenure, and on the same day, the BNP alliance, led by Tarique Rahman, has assumed responsibility for governing the nation.
On this day of peaceful power transfer (Tuesday), the country’s foreign currency reserves have surpassed 34.5 billion US dollars. Sector experts view this as a positive indicator for the economy.
Arif Hossain Khan, Executive Director and Spokesperson for Bangladesh Bank, confirmed this information.
According to central bank sources, this rise in reserves is primarily due to a significant increase in the flow of expatriate earnings (remittances). The growing trend of sending remittances through legal channels in recent months has strengthened the foreign currency reserves. Additionally, a somewhat controlled import expenditure and stable export earnings have also played a supportive role in boosting reserves.
Economists believe that reserves exceeding 34.5 billion dollars will play a crucial role in meeting the country’s import expenses, repaying foreign loan installments, and maintaining stability in the currency market. The news of increased reserves during this period of political transition is considered a reassuring start for the new government.
According to the latest information from Bangladesh Bank, the country’s gross reserves stood at 34.54 billion US dollars at the end of February 17. Concurrently, based on the International Monetary Fund’s (IMF) BPM-6 accounting methodology, the reserves amounted to 29.86 billion dollars.
Data indicates that in January, the first month of the current year, expatriates sent home 3.17 billion dollars, which helped alleviate the dollar crisis. Furthermore, Bangladesh Bank’s purchase of additional dollars from banks has contributed to the increase in its reserves.
The surge in expatriate earnings has continued into February. In the first 16 days of February alone, expatriate Bangladeshis sent 1.807 billion dollars in foreign currency.
However, the robust increase in expatriate earnings has created a surplus of dollars in banks, raising concerns about a potential decline in the dollar’s value. In such a situation, to maintain a balance between the supply and demand of foreign currency and to ensure stability in the currency market, the central bank is actively purchasing dollars from various commercial banks.
In the current fiscal year (2025-26) to date, Bangladesh Bank has purchased 4.90 billion US dollars from commercial banks.
In 2022, the country’s dollar market became unstable, with the price of each dollar rising from 85 taka to 122 taka. Despite various measures taken by the then Awami League government and the central bank, they could not bring the dollar market under control. Eventually, the central bank had to start selling dollars from its reserves. Even after this, stability did not return to the market.
Bangladesh Bank sources reveal that in the past three fiscal years, the central bank sold approximately 34 billion dollars. This includes 7.6 billion dollars in the 2021-22 fiscal year, 13.5 billion dollars in 2022-23, and 12.79 billion dollars in 2023-24. In contrast, only about one billion dollars were purchased from banks during this period.
However, after the fall of the Awami League government, the current government implemented strict measures to curb money laundering. This has led to an increase in both export and expatriate earnings, boosting the supply of dollars. While increased supply would naturally lead to a decrease in the dollar’s price if demand doesn’t keep pace, the central bank is proactively buying dollars from the market to maintain stability.
