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Bangladesh’s foreign exchange reserves stood at $31.43 billion as of Wednesday, according to the latest figures released by the Bangladesh Bank.

However, when calculated following the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual (BPM6), the reserves were recorded lower at $26.45 billion.

The central bank has been publishing both figures since the IMF began insisting on the BPM6-based reporting system in 2022 to ensure greater transparency in measuring usable reserves. The discrepancy arises because the IMF method excludes certain categories, such as the Export Development Fund (EDF), deposits with state-owned banks, and other non-liquid assets, from the official count.

Reserves have been under pressure over the past two years due to rising import bills, a slowdown in export earnings, and weaker remittance inflows. In July, the reserves stood at $31.76 billion, while in June, the figure was around $32.24 billion, indicating a gradual decline.

Analysts note that the BPM6-based reserve amount is crucial as it reflects the country’s actual liquid assets available for import payments and debt servicing. As per IMF standards, the reserves should ideally cover at least three months of imports. With imports averaging $6.5–$7 billion a month, the current BPM6 reserves of $26.45 billion provide around four months of import coverage.

The government and Bangladesh Bank have already taken a series of measures to ease pressure on reserves. These include tightening luxury imports, discouraging under-invoicing, introducing incentives for remittance inflows, and encouraging the use of legal channels for inward remittances.

Despite the challenges, central bank officials said the reserve position remains “manageable” and that efforts are underway to stabilise the foreign exchange market. They added that inflows from upcoming loans and budgetary support from development partners are expected to boost reserves in the coming months.

Bangladesh’s reserves had peaked at over $48 billion in August 2021 before the Russia-Ukraine war and global commodity price hikes significantly increased import bills, leading to a steady decline since then.