Bangladesh’s foreign currency reserves have shown a significant increase, currently standing at $31.50 billion, due to the growing preference of expatriate workers to use formal banking channels for sending remittances. This trend is attributed to a crackdown on illegal channels like Hundi, the stable single price of the US dollar in legal paths, and various incentive schemes within the banking sector.
Reserve Measurement Discrepancy
While the gross reserve figure is $31.50 billion, the reserves measured according to the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual (BPM6) methodology stand at **$26.62 billion**. This information was released by the Bangladesh Bank on Sunday.
Remittance Inflow Strength
The flow of remittances has continued its robust trajectory. In September, the country received $2.68 billion in remittances from expatriate workers. This marks an 11.72% increase compared to the $2.40 billion received in the same period last year. The inflow was also higher than the **$2.42 billion** recorded in August.
Bangladesh Bank data further highlights the exceptional strength of remittances this year: March saw the highest-ever monthly remittance inflow in the country’s history, reaching $3.29 billion. May recorded the second-highest at $2.96 billion.
The consistent and strong inflow of expatriate earnings indicates that the trend of money flowing into the country through formal banking channels remains powerful, contributing positively to the nation’s foreign exchange holdings.
