Bangladesh's foreign currency reserves witnessed a notable boost in March, crossing the $25 billion mark, primarily driven by a significant inflow of remittances. According to Bangladesh Bank, remittance inflow for the month of March amounted to $3.29 billion, which is equivalent to Tk 40,138 crore in local currency. As a result, the country's gross foreign exchange reserves have risen to $25.62 billion.

The information was officially shared on Sunday, April 6, by Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank. The central bank’s latest report reveals that as of April 6, the gross reserves stood at $25,625.38 million, or $2,562 crore and 53 lakh 80 thousand. However, when calculated using the IMF’s BPM6 (Balance of Payments and International Investment Position Manual, sixth edition) methodology, the net reserves currently stand at $20,460.52 million, or $2,046 crore and 5 lakh 20 thousand.

This marks a moderate but positive improvement from the figures reported at the end of March. On March 27, Bangladesh Bank had reported gross reserves of $25,440.88 million, or $2,544 crore and 8 lakh 80 thousand. At that time, reserves under the IMF's BPM6 system were recorded at $20,296.93 million, or $2,029 crore and 69 lakh 30 thousand.

The rise in remittance earnings in March appears to have directly impacted the growth in reserves. Experts suggest that favorable policies and seasonal factors contributed to the increased remittance inflow during the month. This uptick is seen as a positive signal for the country’s external sector, particularly at a time when foreign exchange stability is crucial for macroeconomic management.

Despite the improvement, Bangladesh continues to report both gross and net reserve figures separately. This distinction is maintained to align with international standards and transparency requirements set by institutions like the International Monetary Fund.

Officials at the central bank emphasized that steady remittance inflows and controlled import payments are essential to maintain this upward trend in the reserve position. They also reiterated the importance of encouraging legal remittance channels and enhancing foreign exchange earnings through exports and investment.

The remittance flow in March is among the highest in recent months and reflects the resilience of overseas Bangladeshis in contributing to the national economy. With upcoming festivals and continued efforts to stabilize the economy, policymakers remain hopeful that the foreign exchange reserves will stay on a stable path in the coming quarters.