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Bangladesh’s external sector shows strong resilience: GED

Bangladesh’s external sector has demonstrated remarkable resilience and positive momentum over the past year, signaling robust macroeconomic fundamentals and effective policy management, according to the latest update from the General Economics Division (GED) of the Planning Commission.

The GED report highlights that the external sector’s strong performance has strengthened the country’s foundation for export-led growth, improved investor confidence, and enhanced its capacity to navigate global economic uncertainties.

Exports Remain Strong and Consistent

Export earnings continued to perform strongly throughout the year, with monthly figures frequently exceeding the US$4 billion mark. This consistent performance reflects growing international demand for Bangladeshi products and underscores the competitiveness and adaptability of local industries.

Even in months with moderate growth, export performance remained steady, demonstrating the resilience of the sector and supporting optimistic projections for continued export-driven expansion.

Exchange Rate Stability Boosts Confidence

The exchange rate between the Bangladeshi Taka and the US Dollar remained stable and predictable, a key factor in supporting trade and investor confidence. The bilateral rate hovered around Tk120–122 per USD, with minimal volatility observed in recent months.

Between August 21 and September 16, 2025, the daily rate fluctuated within a narrow band of Tk 121.6 to Tk 121.99 per USD, indicating a well-managed foreign exchange market.

This stability has facilitated smoother trade settlements and long-term business planning. However, the Real Effective Exchange Rate (REER) showed slight appreciation, with figures rising to 124.92 in December 2024 and 126.31 in August 2025, suggesting some erosion in price competitiveness.

The GED recommends a policy approach that balances short-term exchange rate stability with long-term flexibility to maintain competitiveness.

Reserves Reach New Highs

Bangladesh’s foreign exchange reserves also saw a significant upward trend. Gross reserves climbed from $24.86 billion in September 2024 to $31.17 billion by August 2025, with a peak of $31.72 billion in June 2025.

Similarly, BPM6-based reserves rose from $19.86 billion to $26.17 billion over the same period. This sustained growth in reserves provides a strong buffer against external shocks and enhances the country’s ability to meet trade and debt obligations.

Domestic Revenue Collection Surges

On the domestic front, revenue collection has also shown robust growth. The National Board of Revenue (NBR) collected Tk 27,162 crore in August 2025, marking a 17.63% increase compared to Tk 23,089.37 crore in August 2024. This strong fiscal performance reflects improved revenue mobilization and economic activity.

Outlook: Positive and Balanced

The GED report concludes that Bangladesh’s external sector is well-balanced, resilient, and strategically positioned for sustained growth. With stable exchange rates, rising reserves, strong export performance, and improved fiscal outcomes, the economy continues to inspire confidence among investors, businesses, and development partners.

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