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ADB budget support pushes reserves above $31b

ADB budget support pushes reserves above $31b
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Bangladesh’s foreign exchange reserves have climbed back above the $31 billion mark, driven largely by the disbursement of a $1 billion budget support loan from the Asian Development Bank (ADB) and continued growth in remittance inflows.

According to Bangladesh Bank data, the country’s reserves stood at $31.08 billion under the International Monetary Fund’s BPM6 methodology as of 14 June. Gross reserves rose to $35.63 billion.

Just four days earlier, on 10 June, reserves were $30.08 billion under the BPM6 standard and $34.73 billion on a gross basis. The latest figures indicate an increase of nearly $1 billion in BPM6 reserves and about $891 million in gross reserves over the period.

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Central bank officials said the ADB’s budget support loan contributed $1.0005 billion to the reserve stock, making it the principal driver of the recent increase.

Strong remittance inflows also helped strengthen the country’s external position.

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Bangladesh received $1.20 billion in remittances during the first 10 days of June, up 25.83 per cent from $956.19 million received during the corresponding period a year earlier, according to Bangladesh Bank data.

Total remittance inflows reached $33.96 billion between July 2025 and June 10, 2026, compared with $28.46 billion during the same period of the previous fiscal year, reflecting a 19.31 per cent increase.

Officials said sustained growth in remittances, stable export earnings and continued inflows of foreign development financing have helped improve reserve levels in recent months.

However, they cautioned that the reserve position could come under pressure in the coming weeks as Bangladesh prepares to settle its upcoming import payment obligations through the Asian Clearing Union (ACU) mechanism and make scheduled external debt repayments.

Bangladesh last paid $1.37 billion in ACU bills in March. Market participants will now closely watch how much of the recent reserve gains can be retained after the next round of external payments.

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