Bangladesh's forex reserves rise to $34.54bn

Bangladesh’s foreign exchange reserves have reached $34.54 billion, according to the latest data released by the Bangladesh Bank (BB) on Tuesday.

However, when calculated under the International Monetary Fund’s Balance of Payments and International Investment Position Manual (BPM6) methodology, the country’s reserves stand at $29.85 billion. The difference reflects varying accounting standards used to measure reserve assets.

The IMF’s BPM6 method applies stricter criteria in defining reserve assets, excluding certain short-term liabilities and non-liquid components that may be included in the central bank’s gross reserve figure. As a result, the BPM6-based reserve number is typically lower than the headline figure published by the Bangladesh Bank.

Foreign exchange reserves are a crucial indicator of a country’s ability to meet its external obligations, including import payments and debt servicing. They also play a key role in maintaining exchange rate stability and investor confidence.

Bangladesh’s reserves have fluctuated in recent years due to rising import bills, global commodity price volatility and external debt repayments. The central bank has taken various measures to stabilise the foreign exchange market, including tighter import controls, exchange rate adjustments and efforts to boost remittance inflows.

The Bangladesh Bank regularly publishes both the gross reserve figure and the IMF-adjusted figure to ensure transparency and compliance with international reporting standards.