Forex Reserves Rise to $42.30b

The country's foreign exchange reserves on Sunday increased to $42.30 billion, as it was $41.92 billion on May 10, which is enough to cover imports for six months, reports BSS.

"Recently, the reserve of foreign exchange slightly dipped below the $42 billion mark, but after that, the reserve crossed $42 billion again and today (Sunday) it is $42.30 billion," Bangladesh Bank’s Forex Reserve and Treasury Management Department General Manager Saiful Islam told BSS.

Bangladesh had a record $48.02 billion foreign exchange reserve in August last year, sufficient to pay import bills for up to one year, but a steady decline has brought it down to the current level.

Due to the Covid-19 impact and the Russia-Ukraine war, costs of product supply and delivery go up. As a result, the currency of Bangladesh began losing its value like many other currencies in the world for raising the demand of US dollars.

So, the higher dollar expenditure for imports and other necessities is putting pressure on the foreign exchange reserves.

To resolve the decrease, the government has taken several measures – like putting a bar on civil servants' foreign tours and pausing the development of projects that require a large number of imported materials.

Saiful Islam welcomed the government measures and informed that the benefit of the measures will come in long term.