The gross foreign exchange reserves held by commercial banks in Bangladesh have been trending downward, primarily due to factors such as currency swaps and a widening deficit in trade credits.

Officials and bankers have noted a surge in import orders in recent months despite belt-tightening measures implemented by the Bangladesh Bank (BB) to conserve foreign exchange reserves. 

This acceleration in import orders, fueled by a sharp supply of foreign currency, particularly the US dollar, has contributed to the depletion of forex stocks.

Data from the central bank reveals a decline in gross forex reserves held by commercial banks, with figures dropping from $6.17 billion in September 2023 to $5.43 billion by the end of March 2024. Although there was a slight uptick to $5.84 billion in January, the trend quickly reversed, indicating a persistent decline.

A significant deficit in trade credits, amounting to $10.75 billion up to February, has exacerbated the situation. This deficit means that commercial banks are not receiving expected dollar receivables from abroad, further impacting their forex reserves.

Since the launch of currency swap operations, commercial banks have sold over $3.0 billion to the central bank and received approximately Tk 370 billion in return. However, they have also swapped $1.80 billion during the same period, paying around Tk 200 billion.