Bangladesh’s gross foreign exchange reserves have risen above $36 billion for the first time in nearly four years, supported by strong remittance inflows and sustained dollar purchases by the Bangladesh Bank amid improving conditions in the foreign exchange market.

According to central bank data, gross reserves stood at $36.1 billion on Wednesday, the highest level since September 2022, when reserves were $36.47 billion.

Under the International Monetary Fund’s BPM6 methodology, which excludes certain short-term liabilities and counts only readily usable reserve assets, the reserve level stood at $31.55 billion.

The rebound marks a significant recovery from the prolonged reserve pressure that followed the foreign exchange crisis of 2022 and 2023, when the Bangladesh Bank was forced to sell billions of dollars to contain sharp depreciation of the taka and meet growing demand for foreign currency.

Since the beginning of the 2025-26 financial year, the central bank has purchased more than $6 billion from the market to rebuild reserves and stabilise the exchange rate.

The buying programme began on July 13, 2025, with an initial purchase of $202 million and continued in phases throughout the year.

The latest intervention took place on June 4, when Bangladesh Bank bought $25 million.

Central bank officials said that the purchases became necessary after a surge in remittance and export earnings created excess dollar liquidity in the banking system, putting downward pressure on the exchange rate.

Before the Bangladesh Bank resumed dollar purchases, the exchange rate had fallen to Tk 119.5 per US dollar on July 12, 2025.

Since then, the rate has remained broadly stable at around Tk 122 per dollar as the central bank absorbed surplus foreign currency from the market.

The recovery in reserves has been driven largely by a sharp rise in remittance inflows.

Expatriate Bangladeshis sent $32.75 billion through formal banking channels during the July-May period of FY26, an increase of 21.8 per cent from $27.5 billion in the corresponding period of the previous fiscal year.

Monthly remittance inflows have remained above $2 billion since August 2024, reflecting stronger incentives for sending money through official channels.

Improved foreign exchange inflows have eased pressure on the balance of payments and helped strengthen the country’s external position.

With dollar supply exceeding demand in recent months, the Bangladesh Bank shifted its focus from defending the currency to rebuilding reserves.