Bangladesh's forex reserves reach $20b amid rise in remittance

Bangladesh's foreign exchange reserves have surged to $20 billion, driven by an increase in remittances from overseas workers.

According to Bangladesh Bank’s spokesperson and Executive Director, Husne Ara Shikha, the current reserve, as of December 22, stands at $24.84 billion (or 2,484 million USD) based on the bank's latest data.

However, the reserves are officially recorded at $20 billion, which is in line with the International Monetary Fund's (IMF) BPM-6 accounting methodology, UNB reports. 

The reserves had reached the $20 billion mark earlier on November 6, but there was a gradual decline following that, with the reserves dipping below $19 billion during the first week of December.

Despite this dip, the inflow of remittances has provided a crucial boost to the national reserves.

During the first 21 days of December, Bangladesh received $2.07 billion in remittances, a significant rise compared to $1.575 billion and $1.572 billion received in October and November, respectively.

The growing flow of remittances indicates improved financial support from Bangladesh's diaspora, contributing positively to the country's foreign exchange reserves.

This positive trend in remittances, along with other financial factors, is expected to continue strengthening Bangladesh's foreign exchange position, offering a buffer against global economic challenges.