Bangladesh’s foreign exchange reserves reached a 20-month high at the end of April 2025, offering some relief to an economy under pressure from external liabilities and import costs.

According to the Bangladesh Bank (BB), gross reserves rose to US$27.41 billion, the highest figure since August 2023, when it was recorded at $29.26 billion.

Officials at the central bank describe the trend as a positive sign of recovery in the balance of payments (BoP), particularly given that the rise in reserves has occurred without any recent disbursement from the International Monetary Fund (IMF).

Net international reserves (NIR)—a more refined measure that excludes liabilities—also crossed the $16 billion threshold in April, climbing to $16.12 billion by the end of the month.

The improvement in reserves is largely attributed to an upsurge in remittance inflows and export earnings. According to BB data, remittances totalled $2.61 billion in April alone, pushing total receipts for the current fiscal year (FY2024–25) to $24.40 billion, just shy of the record $24.77 billion received in FY2020–21.

Simultaneously, export earnings during the first nine months of the fiscal year rose 10.52 per cent year-on-year to reach $37.19 billion, up from $33.65 billion during the same period in FY2023–24.

The central bank’s gross reserves, however, differ depending on the calculation method. Under the IMF’s Balance of Payments and International Investment Position Manual, sixth edition (BPM6), the reserves stood at $22.05 billion, lower than the official BB figure. This distinction reflects methodological differences, including treatment of encumbered and illiquid assets.

A senior BB official, speaking on condition of anonymity, described the continued growth of reserves—despite clearing significant external payment backlogs—as a “significant achievement.”

Among the payments recently made were dues to Chevron and Qatar Energy, which were part of accumulated arrears the central bank was instructed to settle following the appointment of BB Governor Dr Ahsan H. Mansur in August 2024. The aim was to repair Bangladesh’s image in the eyes of global creditors and development partners.

One of the most noteworthy institutional achievements came from Petrobangla, which on Wednesday announced the full clearance of external debts worth $3.74 billion, two months ahead of the June 2025 deadline. Of this, $1.45 billion was paid during March and April alone, spanning four categories of foreign creditors.

Meanwhile, the pressure on reserves from imports has also been rising. Settlement of letters of credit (LCs), reflecting actual imports, increased 4.07 per cent year-on-year during July–February FY2024–25 to reach $45.99 billion. Simultaneously, the value of newly opened LCs—a proxy for upcoming imports—rose 4.62 per cent to $47.28 billion over the same period.