Bangladesh Bank has delivered positive news regarding the country’s foreign exchange reserves, as it surpassed $25 billion before the end of March, following a record inflow of remittances this month. According to data released by the central bank on Thursday (March 27), the country’s gross reserves have risen to $25.44 billion. Bangladesh Bank re-fixed MFS transaction limit This comes after a significant increase in remittance inflows, which reached $2.94 billion in the first 26 days of March – the highest for any month in the country’s history. However, as per the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh’s net reserves currently stand at $20.29 billion. The net reserve figure is calculated by deducting short-term liabilities from the gross reserves. On March 9, Bangladesh paid $1.75 billion to settle import bills through the Asian Clearing Union (ACU), which temporarily reduced the gross reserves to below $25 billion and the net reserves to below $20 billion. Remittance inflow surges amid forex reserve crisis After this payment, the country’s reserves under the BPM6 standard had dropped to $19.75 billion but have since rebounded above the $20 billion mark. The surge in remittances has played a crucial role in replenishing the reserves, providing much-needed relief to the economy ahead of Eid. Central bank officials remain optimistic that continued inflows will help stabilise the foreign exchange reserves further. Speaking to the media, Bangladesh Bank’s spokesperson and Executive Director, Arif Hossain Khan, confirmed the latest reserve figures and expressed confidence in the country's external financial position. NBR preparing stricter tax exemption policy With the upcoming Eid festivities, the record remittance inflows have brought a timely boost to the economy, offering a sense of optimism amidst ongoing financial challenges.

Bangladesh’s foreign exchange reserves on Tuesday declined to USD $39.77 billion or below 40 billion mark for the first time in two years, according to updated data of the central bank. The drop has been attributed to Bangladesh Bank’s import payments of $1.99 billion last week to the Asian Clearing Union (ACU). Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are members of ACU. The central banks of these countries have to make the payments every two months. Read: BB tightens belt on forex reserve, bans import credit on luxury items The reserves have been under stress for the past couple of months due to surge in the import bills and drop in the inward remittance.  Bangladesh’s foreign exchange reserves soared to record amount of $46.15 billion in December last year. Bangladesh’s forex reserves witnessed a fall as import volume in the fiscal year 2021-22 increased to about $78 billion, while foreign exchange gained from remittance and export stood at $73 billion. The export earnings in FY 22 amounted to 52.08 billion and inward remittances $21.03 billion. Read Fuel, forex reserves may run out after power crisis: Fakhrul The inward remittance shows a fall in the FY22 to $21.03 billion from $ 24.77 billion in the FY 21. Md. Serajul Islam, executive director and spokesperson of BB told UNB that the central bank is selling US dollar to meet huge import payments in every day. He said fall in inward remittance and rising demand of imports are the reasons for the fall in the foreign exchange reserves. Read Amid volatile forex market, BB devalues currency by Tk1.60