Bangladesh’s external financial standing has reached a critical turning point, with gross foreign exchange reserves successfully surpassing the $28 billion threshold. Arif Hossain Khan, the Executive Director and spokesperson for the Bangladesh Bank, confirmed that the national stockpile reached $28.04 billion on 22nd December 2024. This recovery signals a period of renewed stability for the economy, which has been under intense international scrutiny regarding its liquidity and debt-servicing capabilities.
The pace of this recovery is particularly striking, occurring in less than three weeks. Under the International Monetary Fund’s (IMF) Balance of Payments Manual 6 (BPM6) accounting standard, gross reserves were recorded at $26.51 billion on 1st December. This represents a rapid accumulation of $1.53 billion within a mere 20-day window. The primary mechanism driving this growth has been the central bank’s aggressive “mop-up” operations, wherein it has been purchasing US dollars from commercial lenders via a series of auctions.
A surge in inward remittances from the Bangladeshi diaspora has created a surplus of dollar liquidity within the domestic banking system. To prevent the local currency from appreciating too rapidly—which would negatively impact the competitive edge of national exports—the central bank has opted to absorb this excess supply. By doing so, the Bangladesh Bank is effectively replenishing its “war chest” while simultaneously maintaining a stable exchange rate for the US dollar.
Analysis of Foreign Exchange Inflow and Interventions
The following table highlights the significant shift in the country’s reserve position during the final weeks of 2024.
| Financial Indicator | Position on 1 Dec | Position on 22 Dec | 20-Day Movement |
| Gross Reserves (BPM6) | $26.51 Billion | $28.04 Billion | +$1.53 Billion |
| Market Purchases (FYTD) | — | >$2.50 Billion | Persistent Activity |
| Growth Drivers | Remittance Inflow | Central Bank Auctions | Liquidity Absorption |
| Accounting Standard | IMF BPM6 | IMF BPM6 | Standardised Data |
Since the commencement of the current fiscal year, the Bangladesh Bank has purchased in excess of $2.5 billion from the open market. This proactive strategy is designed to meet the net international reserve (NIR) targets set by the IMF as part of the country’s ongoing loan programme.
Economists have noted that while the crossing of the $28 billion mark is an encouraging milestone, the central bank must continue to balance the need for reserve accumulation with the demand for essential imports. For the moment, however, the robust performance of remittance channels and the central bank’s strategic market interventions have provided a much-needed buffer against global economic volatility.