DHAKA: Bangladesh’s foreign exchange reserves have rebounded, reaching over 21 billion U.S. dollars by the end of December 2024, as indicated by the latest data from the central bank. This marks a significant recovery following a prolonged period of decline.
According to Namibia Press Agency, the Bangladesh Bank reported that the nation’s foreign exchange reserves stood at 21.359 billion dollars as of December 31, following the International Monetary Fund’s (IMF) calculation method. This is a notable increase from the 18.61 billion dollars recorded at the end of November. For Bangladesh’s expanding economy, maintaining forex reserves that cover six months’ worth of import bills is deemed adequate. However, current reserves allow for the payment of nearly four months’ import bills, as stated by central bank officials.
Bangladesh’s foreign exchange reserves previously reached a peak of 48 billion dollars in August 2021. In response to the diminishing reserves, the central bank has implemented several strategies, including offering incentives to attract more remittances from the millions of Bangladeshi citizens living and working overseas.
Remittances, a vital component of Bangladesh’s foreign exchange, amounted to 13.78 billion dollars in the period from July to December, according to official data.