Dhaka: With the interim government completing one year on August 8 after taking over the responsibility last year, Bangladesh’s foreign currency reserves have gained stability as trust and confidence of the concerned have made a rebound in the economy and the banking system. Within this period, foreign currency reserves have gone up from less than $20 billion at the end of July 2024 to over $30 billion at the end of July 2025, indicating that the country is now going well through an economic recovery phase.
According to Bangladesh Sangbad Sangstha, the Bangladesh Bank’s (BB) latest data shows that the country’s gross reserves have risen to $30 billion by July 24, 2025. 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 $24.99 billion.
Economists and experts observed that rebounding trust in the economy and the banking system is an important bellwether of Bangladesh’s
strong foreign currency reserves. They noted that the exchange rate stability has helped to halt the erosion of foreign exchange reserves, which are gradually rebuilding in recent months.
Industry insiders mentioned that the high inflow of remittances appears to be an automatic outcome of curbing hundi, money laundering, and corruption following the end of Sheikh Hasina’s autocratic regime on August 5 last year, which contributed to the turnaround in the external sector.
Talking to BSS, General Economics Division (GED) Member of the Planning Commission Dr. Monzur Hossain stated that export earnings, inward remittance flow, and the exchange rate are in good shape, with increased export earnings alongside a rise in inward remittance flow. He also noted that the exchange rate has stabilized and foreign currency reserves have increased, indicating that the external sector is in a comparatively good condition.
Bangladesh Bank Executive Director and Spokesperson Arif Hussain Khan confirmed that the stable reser
ve position is also reflected in the current and financial account balances, as deficits in the external accounts have narrowed significantly amid easing of the dollar crisis. Strong inflows from remittances and exports have helped rebuild reserves, he added.
The surge came based on 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).
Arif Hussain noted that the reserves are rising due to the declining trend in money laundering, with a good flow of expatriates’ income and high growth in exports. ‘Around one year 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 added.
Renowned economist Dr. Zahid Hussain emphasized that 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’s economy faced a lot of problems. It was difficult for banks to open letters of credit (LC). Now everything is gradually becoming normal,’ he added.
Dr. Zahid, also the former lead economist of the World Bank Dhaka office, mentioned that after taking office, the interim government started to restore regulations in the banking sector, supported distressed institutions from falling further, and took initiatives to bring back stability. The government has advanced significantly in freeing the banking sector from the clutch of a business conglomerate, he said, adding, ‘We’re going towards a more or less stable condition, but I won’t say the crisis is over.’