Dhaka: Bangladesh marked a major political milestone as the interim government, led by Nobel Laureate Professor Muhammad Yunus, formally handed over power to a new administration under the leadership of Tarique Rahman. Accompanying this peaceful transition was a significant economic boost, with the country’s foreign exchange reserves crossing the $34.5 billion mark.
According to United News of Bangladesh, economic analysts view this surge as a positive indicator for the incoming government, providing much-needed stability as the nation enters a new democratic chapter. Arif Hossein Khan, Executive Director and Spokesperson of Bangladesh Bank, confirmed the updated figures. Central bank sources revealed that the primary driver for this increase is a massive spike in remittance inflows.
The gross reserves stand at $34.54 billion as of February 17, while the IMF BPM-6 calculation places them at $29.86 billion. January saw remittances reaching $3.17 billion, the highest in a single month this year, and February has already shown momentum with $1.81 billion received in the first 16 days.
Central bank officials noted that expatriate Bangladeshis are increasingly using legal channels to send money home, significantly strengthening the nation’s dollar holdings. Due to the surplus of dollars in the banking system, there were concerns about a sharp decline in the value of the US dollar. To maintain market equilibrium and ensure stability, Bangladesh Bank has been actively purchasing dollars from commercial banks.
During the current fiscal year, FY2025-26, the central bank has purchased approximately $4.90 billion from the market. This marks a sharp reversal from previous years (2021-2024), where the bank was forced to sell nearly $34 billion to curb an unstable market.