Bangladesh’s foreign exchange reserves increased from less than US$20 billion in 2024 to over $31 billion by June 2025 after just eleven months of the interim government, demonstrating that the nation is currently experiencing a successful economic recovery period, according to BSS.
Institutional stability, the alleviation of the liquidity crisis, and other operations are being significantly aided by the record inflow of remittances into the nation’s national reserves during this time.
Experts and economists noted that the record remittance influx has served as a key indicator of Bangladesh’s economic recovery.
The most recent data from the Bangladesh Bank (BB) shows that by July 2, 2025, the nation’s gross reserves had increased to $31.72 billion.
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 $26.67 billion.
The surge came after a significant increase in remittance inflows, which reached $30.33 billion in the outgoing fiscal year 2024-25 (FY25), marking the highest amount ever received in a single fiscal year in the country’s history.
This figure reflects a 26.80 percent increase compared to the $23.91 billion received in the previous fiscal year (FY24).
This surpasses the earlier record of $24.77 billion received in FY 2020-21 during the Covid-19 pandemic, when remittances spiked due to restrictions on informal hundi channels and the introduction of incentive bonds.
A record $3.29 billion in remittances came through the banking channel in March 2025, the highest in a single month in the country’s history.
In continuation of this, more than $2 billion remittances have arrived in the country each month of the last fiscal year (FY25).
Talking to BSS, a senior official of the central bank said that the reserves are rising due to the declining trend in money laundering, with a good flow of expatriate income and high growth in exports.
“Almost eleven months ago, the Interim Government came to power, promising to bring changes across the board. A number of policy measures have been taken to reform the national economy, organizations, administration, and thus establishing a strong system of fostering public spirit,” he said.
He added the dollar exchange rate has remained stable at around Tk 122 for a long time which is also a positive aspect.
“The main reason for the decline in the dollar price is the increase in supply. The supply of dollars is now at its best over the last two years,” he noted.
The Bangladesh Bank official said several factors contributed to the sudden surge of remittances in Bangladesh.
“While the government took a range of initiatives to tackle price manipulation under the capital market, defying the norm, surging exports reaching a staggering amount of $48 billion which has also contributed to this rise,” he mentioned.
He said the non-residents or the Bangladeshi expatriates also felt motivated to send remittances legally through the banking channel.
Renowned economist Dr Zahid Hussain said the surge in remittances has played a crucial role in replenishing the reserves, providing much-needed relief to the economy.
“Due to the dollar crisis, Bangladesh economy faced a lot of problems. It was difficult to open letter of credit (LC) for banks. Now everything is gradually becoming normal,” he added.
After taking office, Dr Zahid, also the former lead economist of the World Bank Dhaka office, mentioned that the interim government started to restore regulations in the banking sector, supported the distressed institutions from falling further and took initiatives to bring backthe laundered money from abroad.
The government has advanced a lot in freeing the banking sector from the clutch of a business conglomerate, he said.
“We’re going towards a more or less stable condition, but I won’t say the crisis is over,” he added.
According to Abdul Quaium Chowdhury, Deputy Managing Director (DMD) of Premier Bank PLC, remittances have been steadily rising since August 2024, giving the interim administration a break from the rapidly depleting foreign exchange reserves.
According to him, this has developed into a vital source of economic comfort for a country that is presently experiencing financial pressures.
