Bangladesh’s foreign currency reserves have surpassed $20 billion, attributed to a recent currency swap initiative by the central bank.

Data from the Bangladesh Bank revealed that as of February 20, the forex reserves reached $20.19 billion, up from $19.94 billion the previous week.

Since January 24, when the reserves were at $20.03 billion, they have remained around $19 billion for nearly a month.

The rise in reserves followed the introduction of a currency swap with banks by the BB, aimed at meeting the net reserve condition set by the IMF with its $4.7 billion loan program.

Commercial banks can now exchange local currency for US dollars with the central bank under the swap deal, lasting from seven to 90 days.

Approximately $235 million has been secured from nearly 10 banks since the introduction of the swap deal, according to a senior BB official.

The central bank continues to sell US dollars from its reserves to settle import bills of state-run enterprises.

The forex crisis, exacerbated by rising import payments and supply chain disruptions due to the pandemic and the Russia-Ukraine conflict, is expected to ease soon.

Industry experts anticipate a rebound in merchandise exports and a sustained increase in remittance flows in the coming months, contributing to alleviating the forex crisis.