IMF Lauds Bangladesh’s Rising Foreign Reserve Strength

The International Monetary Fund (IMF) has praised Bangladesh for the sharp rise in its foreign exchange reserves, describing it as a major achievement in stabilising the economy and strengthening the country’s external position.

Thomas Helbling, Deputy Director of the IMF’s Asia and Pacific Department, said the steady accumulation of reserves demonstrates Bangladesh’s progress in addressing balance of payments pressures and building resilience against global financial shocks.

Speaking at a press briefing in Hong Kong on Friday during a regional economic outlook presentation, Helbling noted that the buildup of reserves is a key target of the IMF’s $5.5 billion Extended Credit Facility (ECF) programme for Bangladesh.

“The accumulation of reserves is one of the central goals of the IMF-supported programme, particularly as Bangladesh continues to navigate external sector challenges,” he said.

According to IMF data, Bangladesh’s reserves stood at $27.35 billion as of 16 October 2025—measured under the Fund’s new accounting framework—compared with $19.93 billion a year earlier. The rise has been driven by stronger remittance inflows, export growth, and proactive foreign currency purchases by the Bangladesh Bank.

Helbling commended the central bank for maintaining a prudent policy stance, adding that higher reserves will help reduce external vulnerabilities and boost confidence among international investors and lenders.

An IMF mission is scheduled to visit Dhaka later this month to conduct the fifth review of the ongoing reform programme. The team will assess Bangladesh’s progress in fiscal management, monetary policy, and structural reforms, as well as examine the sustainability of foreign exchange market interventions.

“The mission will be in the field soon, and the outcome will depend on policy performance and reform consistency,” Helbling remarked.

While the IMF welcomed the recent gains, it also underscored the need for continued transparency in foreign exchange operations and strict adherence to the managed floating exchange rate system.

Bangladesh’s economy has faced several headwinds over the past two years, including inflationary pressure, sluggish private sector credit, and global demand fluctuations. In response, the government has adopted tighter monetary measures, enhanced revenue collection, and pursued structural adjustments in line with IMF advice.

A successful completion of the fifth review could unlock the next tranche of IMF financing, reinforcing market confidence and supporting macroeconomic stability.

The IMF’s latest assessment highlights growing international recognition of Bangladesh’s reform progress and its commitment to restoring economic balance, safeguarding reserves, and ensuring sustainable growth in the years ahead.