ADB budget support lifts forex reserves above $35.6b

Bangladesh's gross foreign exchange (forex) reserves climbed to US$35.63 billion on Sunday after the country received more than $1.0 billion in budget support from the Asian Development Bank (ADB).
The country's gross foreign exchange reserves rose to $35.63 billion on Sunday from $34.73 billion on June 10 following the disbursement of ADB budget support funds, officials said.
According to the latest data from the Bangladesh Bank (BB), reserves measured under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), increased to $31.07 billion from $30.08 billion during the same period.
"We are now capable of meeting around six months' worth of import payment obligations with the existing reserves," a senior Bangladesh Bank official told The Financial Express (FE).
Bangladesh's actual imports, measured by the settlement of letters of credit (LCs), declined by 4.14 per cent to $50.43 billion during the July-March period of fiscal year (FY) 2025-26, compared with $52.61 billion in the corresponding period of the previous fiscal year.
Meanwhile, the opening of fresh LCs, commonly known as import orders, rose marginally by 0.35 per cent to $53.94 billion during the period under review, up from $53.75 billion a year earlier.
The central bank official said the country's gross forex reserves could exceed $36 billion by the end of June if the government receives additional external financing.
Earlier, on May 10, the gross forex reserves fell to $34.14 billion after Bangladesh settled $1.51 billion in import payment liabilities to member countries of the Asian Clearing Union (ACU).
Bangladesh Bank officials said stronger remittance inflows and lower import payment obligations have also helped improve the country's reserve position in recent months.
The central bank's purchase of US dollars from commercial banks has further supported reserve growth, according to officials.
Bangladesh Bank has bought a total of $6.42 billion from commercial banks since July 13 last year under the prevailing market-based, free-floating exchange rate regime, BB data showed.

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