The nation’s foreign exchange reserves have surpassed $31 billion once more. The gross reserves at the end of the day on Wednesday, August 27, were $31.33 billion, according to the most recent data from Bangladesh Bank.

At the same time, reserves have reached $26.31 billion based on the International Monetary Fund’s (IMF) BPM-6 accounting method.

The gross reserves were $30.86 billion and $25.87 billion, respectively, according to BPM-6 on August 24.

Short-term liabilities are subtracted from total reserves to determine net or actual reserves. In addition to this, Bangladesh Bank’s reserves are also calculated using spendable reserves. This information is not formally released by the central bank. The dollars in the IMF’s SDR sector, foreign currency in banks’ foreign exchange clearing accounts, and Akur bills are not included in the calculation of useable reserves.

Relevant sources indicate that the nation has more than $20 billion in usable reserves. This stockpile can cover the cost of imports for more than three and a half months at a monthly rate of $5.5 billion. In general, a nation’s reserves should cover at least three months’ worth of import expenses.

Bangladesh Bank’s reserves reached a high of $48 billion in August 2021. However, during this period, the foreign exchange reserves faced significant pressure due to unprecedented money laundering activities by influential members of the Awami League government, along with various global and domestic factors. The rise in import costs in the post-Covid-19 era contributed to this strain. Additionally, Bangladesh’s current account deficit continued to grow as a result of a substantial trade deficit. The depreciation of the taka against the dollar further impacted energy prices and import costs. In response to the crisis, the central bank began selling dollars from its reserves, leading to a gradual decline in the reserves. Consequently, in July 2022, Bangladesh sought a $4.7 billion loan from the IMF to bolster its foreign exchange reserves.