The foreign exchange reserves of Bangladesh have made a notable recovery, exceeding the $31 billion threshold in total, indicating a robust period of economic revival. As of July 2, 2025, the country’s gross reserves reached $31.72 billion. This encouraging surge comes after a period where reserves had dipped below $20 billion in 2024, reflecting the positive impact of various policy measures and a remarkable increase in foreign currency inflows. This upward trend instills greater confidence in the nation’s financial stability. The primary driver behind this impressive recovery is a record inflow of remittances from Bangladeshi expatriates working abroad. In the fiscal year 2024-25 (FY25), remittances hit an all-time high of $30.33 billion, representing the largest sum ever recorded for a single year in the nation’s history. This figure represents a robust 26.80 percent increase compared to the previous fiscal year (FY24) and surpasses the prior record set during the Covid-19 pandemic. The consistent monthly inflow, with over $2 billion arriving each month in FY25 and a historic $3.29 billion in March 2025 alone, highlights the enduring dedication of Bangladeshi workers overseas. Several factors have contributed to this positive development. Alongside the record remittances, a declining trend in money laundering has been observed, ensuring more foreign currency flows through official channels. High growth in exports also continues to contribute significantly to the reserves. Furthermore, the stability of the dollar exchange rate, which has remained around Tk 122 for an extended period, has played a crucial role in managing the foreign exchange market effectively and boosting confidence among expatriates to send money through legal means. Economists and financial experts view this surge in foreign currency reserves as a much-needed relief for the economy. The increased supply of dollars is helping to ease the liquidity crisis that banks faced, making it easier to open Letters of Credit (LCs) for imports and gradually bringing economic activities back to normal. This improved reserve position not only strengthens the country’s capacity to meet its import needs but also provides a vital buffer against external shocks, enhancing the nation’s economic resilience. This significant recovery in foreign exchange reserves underscores Bangladesh’s commitment to implementing effective economic reforms and policies. It demonstrates the interim government’s success in stabilizing key economic indicators and fostering an environment conducive to growth. As remittances continue their strong performance and other sectors contribute positively, Bangladesh is well-positioned for sustained economic progress, moving towards greater financial strength and a prosperous future for all its citizens.
