Bangladesh's total foreign exchange reserves have surpassed the $30 billion mark, reaching $30.51 billion as of Thursday, June 26. However, under the International Monetary Fund's (IMF) BPM6 accounting method, the reserves stand at $25.51 billion, with usable reserves at approximately $19.80 billion.
This information comes from sources within the Bangladesh Bank. The country's reserves previously reached $30 billion in June 2023.
Arif Hossain Khan, Executive Director and Spokesperson for the Bangladesh Bank, stated, "The addition of funds from the IMF's two installments totaling $1.3 billion, along with $900 million from the Asian Development Bank (ADB) and loan assistance from JICA, has pushed the total reserves above $30 billion."
According to relevant central bank sources, the total reserves at the end of Thursday were $30.51 billion, with the IMF's BPM6 method showing reserves exceeding $25 billion.
The net or actual reserve amount is obtained by subtracting short-term liabilities from the total reserves. However, the Bangladesh Bank also maintains another reserve calculation, the "usable reserve," which is not formally disclosed.
This calculation deducts dollars held in the IMF's SDR account, foreign currency in banks' foreign exchange clearing accounts, and ACU bills to determine the usable reserve.
Reports indicate that the country's usable reserves are currently close to $20 billion. At a monthly import cost of $5.5 billion, this reserve amount can cover more than three and a half months of import expenses. Generally, a country is advised to maintain a minimum of three months' worth of import coverage in its reserves.
Bangladesh's reserves peaked in August 2021, reaching a high of $48 billion.
Following the COVID-19 pandemic, a significant increase in import costs, coupled with unprecedented money laundering by influential figures within the Awami League government and various global and domestic factors, put severe pressure on the country's foreign exchange accumulation.
Bangladesh faced a substantial trade deficit, leading to a continuous increase in the current account deficit. As the Bangladeshi Taka depreciated against the US Dollar, it impacted fuel prices and imports.
To manage the crisis, the central bank began selling dollars from its reserves, gradually depleting them. To address the dwindling reserves, Bangladesh applied to the IMF for $4.7 billion in loan assistance in July 2022.
The then-Awami League government primarily sought this loan assistance from the IMF due to a significant current account deficit, depreciation of the Taka, and declining foreign exchange reserves.
In the fiscal year 2023-24, expatriate remittances totaled $23.91 billion. In the current fiscal year 2024-25, remittances have reached $29.46 billion as of last week, marking an increase of almost $6 billion. Furthermore, export earnings have shown a 9% growth.
Consequently, despite imports increasing by approximately 5%, foreign exchange reserves are on the rise.
On July 31, 2024, at the end of the Awami League government's last term, the total reserves stood at $25.92 billion, with BPM6 calculated reserves at $20.48 billion.