TDS Desk

The country’s gross foreign exchange reserve reached $18.56 billion on December 1, according to Bangladesh Bank data.

Husne Ara Shikha, spokesperson of Bangladesh Bank confirmed the matter.

Earlier on Monday, the central bank had informed that the gross reserves crossed $20 billion. However, the number was in fact the gross remittance as of December 22, the spokesperson clarified this at evening on Monday (December 23).

The reserve was determined as per IMF formula based on the Balance of Payments and International Investment Position Manual (BPM6). However, as of BPM5, the gross reserve is $24.27 billion, according to the central bank.

Photo: Collected

On 6 November, the reserve was $20 billion but it started to decline slowly and dipped below $19 billion in the first week of December.

The foreign exchange reserve remained stable between $19 billion and $20 billion under the interim government due to raising the dollar price to Tk120 aligning with market demand.

The Bangladesh Bank also stopped selling dollars from the forex reserve after the fall of Sheikh Hasina government on 5 August.

In recent weeks, rising import activities caused dollar prices to increase, with banks spending Tk127.7 per remittance dollar.

The availability of dollars supported by strong remittance inflows allowed banks to ease restrictions on opening Letters of Credit (LC).

Central bank data shows that imports grew by 1% during July-October of the current fiscal year, whereas it was negative 10% in FY24. During the same period, remittance surged by 30%, and exports registered an impressive 8% growth, further supporting economic activities.