Bangladesh’s foreign exchange reserves have once again shown an upward trend, supported in large part by a strong increase in remittance inflows at the beginning of the new fiscal year.
According to the latest figures released by Bangladesh Bank, the country’s gross foreign exchange reserves have risen to US$36,469.94 million, equivalent to around US$36.47 billion. Reserves calculated under the International Monetary Fund’s BPM6 methodology stood at US$31,651.97 million, or approximately US$31.65 billion.
The latest position was reflected in data released by the central bank on Monday, 2 August. Mohammad Ibrahim Munsi, joint director of Bangladesh Bank’s Foreign Exchange Reserve and Treasury Management Department, confirmed the updated reserve figures.
A major factor behind the improvement has been the continued strength of remittance inflows from Bangladeshis working abroad. In July, the first month of the 2026–27 financial year, the country received US$2.859 billion in remittances. This was significantly higher than the US$2.478 billion recorded in the same month a year earlier, representing year-on-year growth of around 15.4 per cent.
The strong start to the financial year has been viewed as a positive signal for Bangladesh’s foreign exchange market. When remittances enter the country through formal banking channels, they increase the supply of foreign currency available within the financial system. This can help banks meet import payment obligations and other external transactions while easing pressure on the foreign exchange market. A sustained rise in remittance receipts can also provide greater scope for strengthening the central bank’s reserve position.
However, one figure circulating in the published information concerning remittances received on the final two days of July — 30 and 31 July — appears inconsistent with the overall monthly total. The amount has been cited as US$152 billion, which is clearly disproportionate to the total remittance inflow of US$2.859 billion for the entire month. The figure may therefore involve an error in the currency unit or numerical presentation and should not be treated as verified without further clarification.
The distinction between gross reserves and reserves calculated under the BPM6 framework is also important when assessing Bangladesh’s foreign exchange position. Gross reserves provide a broader measure of the foreign currency assets held by the central bank. The BPM6 methodology, based on the IMF’s Balance of Payments and International Investment Position Manual, Sixth Edition, applies specific criteria to determine the reserve assets that qualify under the internationally recognised framework. As a result, the figures reported under the two methods can differ without indicating a contradiction.
Foreign exchange reserves remain a crucial indicator of Bangladesh’s external financial strength. The country relies on foreign currency to pay for essential imports, including fuel, food, industrial raw materials, machinery and other goods. Adequate reserves are also important for meeting external debt obligations and maintaining the country’s capacity to settle international payments.
The rise in remittances is particularly significant because migrant workers remain a major source of foreign currency for Bangladesh. A sustained increase in formal remittance flows could help improve liquidity in the foreign exchange market and reduce some of the pressure associated with external payments.
Yet the long-term trajectory of reserves will depend on more than remittances alone. Export earnings, import costs, foreign loan disbursements, debt repayments, investment flows and other international transactions all influence the country’s external balance. A strong remittance performance can provide immediate support, but maintaining a stable reserve position requires a broader improvement in the balance of external payments.
The latest figures therefore offer some relief at the start of the new financial year, but the sustainability of the trend will depend on developments in the months ahead. Market observers will closely watch whether