Foreign exchange reserves of the country have crossed $33 billion at the end of the and continue to move upward, confirming a clear recovery trend driven by record remittances, sustained dollar buying by Bangladesh Bank (BB) and tighter control over external payments.
The latest position marks the strongest reserve level in nearly three years and signals a shift from crisis management to consolidation.
The BB data show gross reserves more than $33 billion at the end of December last year, up by more than USD 7 billion from the lows seen after the 2024 shock.
The pace of accumulation accelerated sharply in the final quarter as inflows strengthened and there is slow in outflows.
The single biggest driver is remittance. December inflows crossed USD 3 billion and July-December amount in the first half of the running fiscal crossed $16 billion, one of the highest monthly and half yearly figures on record.
For the last full calendar year, remittances stayed consistently above trend, reflecting stronger formal channel use, incentives and stable exchange rate expectations.
This steady dollar supply reduced pressure on banks and gave the central bank room to rebuild reserves.
Alongside remittances, the BB's direct dollar purchases played a decisive role. In the first half of FY26, the central bank bought about USD 3 billion or slightly more from commercial banks, with over $1 billion absorbed in December alone.
These purchases were made without disrupting the market, signaling excess dollar liquidity compared to earlier periods.
A senior BB official said in a firm tone, "We are deliberately accumulating reserves from internal sources. This is disciplined policy action, not emergency support. Our objective is to secure stability and rebuild buffers sustainably."
On the outflow side, pressure eased as letter of credit openings remained subdued. Import demand stayed controlled, particularly for non-essential items, as banks maintained cautious LC approvals and businesses adjusted to tighter trade finance conditions. Lower LC openings translated into reduced immediate dollar demand, directly supporting reserve growth.
On the other hand while scheduled external debt repayments continued, fresh large-scale foreign borrowing remained limited. This helped prevent reserve erosion. Project loans and budgetary support came in selectively, but the overall contribution of new foreign loans was smaller than in previous years.
Foreign direct investment showed mixed performance. Net inflows improved modestly compared to the weakest period but remained below long-term potential. FDI contributed to dollar supply, but it was not the main engine of the reserve rebound. The recovery story remains overwhelmingly remittance-led.
Under the IMF's BPM6 accounting method, usable reserves stand near USD 28.5 billion, still sufficient to cover more than five months of imports, a level policymakers see as comfortable in the current global environment.
Another top central bank policymaker said in a commanding remark, "We are defending the Taka and rebuilding reserves at the same time. This balance is intentional. Market discipline, controlled imports and strong remittance flows are working together."
