Bangladesh's Foreign Exchange Reserves Exceed $21 Billion

Bangladesh's foreign exchange reserves surpassed $21 billion by the end of December 2024, according to the latest data from the Bangladesh Bank. The central bank reported that as of December 31, the reserves stood at $21.359 billion.

As per the International Monetary Fund (IMF) standards, a growing economy like Bangladesh requires sufficient reserves to cover six months of import payments. However, current reserves are enough to cover approximately four months of import bills, according to central bank officials.

Significant Contribution of Remittances

One of the key contributors to Bangladesh's foreign exchange reserves is remittances. Official statistics reveal that the country received $13.78 billion in remittances during the July-December period.

This underscores the vital role of remittances in supporting Bangladesh's growing economic activities. However, analysts have pointed out that rising import costs and other economic pressures have kept reserve levels below optimal thresholds.

To stabilize the economy and control inflation, a consistent increase in foreign exchange reserves will be crucial for Bangladesh in the coming months.