For the first time in a long while, Bangladesh's foreign currency reserves have surpassed $26 billion. As per the BPM6 standard set by the IMF, reserves have now exceeded $21 billion. This increase comes despite mounting pressure to repay foreign loans and the country making high monthly payments toward these debts. The rise in foreign currency reserves brings some relief to both the government and the private sector.

In today's edition of Star Explains, we will delve into why reserves are increasing despite the burden of foreign debt.