Foreign exchange reserves rise to $35.61b

The gross foreign exchange reserves have climbed to 35.61 billion US dollars, the central bank confirmed on Friday, reflecting a steady improvement driven by strong remittance inflows, stable export earnings, and controlled import expenditure.

Bangladesh Bank spokesperson Arif Hossain Khan confirmed the figures, adding that the usable reserves measured under the International Monetary Fund's Balance of Payments Manual sixth edition standard, or BPM6, currently stand at 30.96 billion dollars. 

While the gross figure includes various foreign currency funds and other instruments, the BPM6 calculation, which excludes less liquid assets, is considered the more internationally recognized benchmark.

Economists and banking officials attributed the improvement to several converging factors. Rising remittances through formal banking channels have emerged as the primary driver, alongside consistent earnings from the readymade garment sector, disbursements from foreign development partners and loans, and a reduction in the import of non-essential and luxury goods. These developments have significantly reduced pressure on the dollar market, allowing the central bank to limit its intervention by selling foreign currency.

Analysts say the current reserve level is sufficient to cover around five months of import payments, a threshold regarded as a key indicator of economic health. A stronger reserve position also sends a positive signal to international lenders and foreign investors, boosting confidence in the country's external payment capacity and creditworthiness. 

Economists further noted that stability in the dollar market could help ease inflationary pressures over time.