Bangladesh’s finance ministry forecasts that foreign exchange reserves will rise to $34 billion in the fiscal year 2025-26. This marks a notable increase from the current level of $26.7 billion.
The projection comes despite missing this year’s target of $31.8 billion in reserves, even though import growth slowed down. At the end of the last fiscal year, reserves stood at $26.9 billion.
The ministry’s Medium Term Macroeconomic Policy Statement attributes the positive outlook to expected growth in key areas: exports are projected to rise by 10%, imports by 8%, and remittance inflows by 8%.
Between July 2024 and March 2025, the Bangladeshi Taka depreciated by 3.28% against the US dollar. However, recent signs show exchange rate stability and improving foreign reserves. On May 14, 2025, Bangladesh Bank shifted from a crawling peg system to a market-based exchange rate regime.
This policy change lets market forces determine the exchange rate. The aim is to make Bangladesh’s external sector more flexible and resilient.
The finance ministry expects this reform to improve foreign exchange management, attract more foreign investment, boost export competitiveness, and increase remittances through official channels.
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