Foreign Currency Reserves Surge Above $20bn In Bangladesh

The country's foreign currency savings or reserves have increased to over 20 billion dollars. Gross reserves stand at 25.73 billion dollars.

According to Bangladesh Bank's information, as of March 27, reserves were 2,481 crore dollars and BIPM-6 was 1,945 crore dollars (19.96 billion). By April 8 of the current month, gross reserves have increased to 2,538 crore dollars, and BIPM-6 has reached 2,010 crore dollars (20.10 billion).

At the beginning of the fiscal year 2023-24, gross reserves were 297.3 billion dollars, and BIPM-6 was 233.7 billion dollars.

Officials at the central bank have stated that expatriates have sent more remittances before Eid. Additionally, exports have increased. These factors have contributed to a slight increase in reserves.

Remittances, export earnings, foreign investments, loans from various countries and international organizations contribute to the formation of foreign currency reserves. Conversely, expenditures such as imports, interest, or installment payments on loans, salaries, and allowances for foreign workers, and expenses for tourists or students abroad lead to the outflow of foreign currency. The difference between income and expenditure adds to or subtracts from reserves.

The central bank is selling dollars regularly from reserves to maintain stability in the market. Until January 16 of the fiscal year 2023-24, the central bank sold 7.6 billion dollars. During the same period, Bangladesh Bank bought one billion dollars, equivalent to one billion dollars, from some commercial banks.

According to IMF loan conditions, the country was supposed to have a net reserve of 24.46 billion dollars at the end of June. At that time, the net reserve was 20.47 billion dollars. Also, at that time, NBR was lagging behind by about 17 thousand crore taka.

In the fiscal year 2022-23, the central bank sold 1.358 billion dollars to various banks. In the previous fiscal year (2021-22), it sold 7.62 billion dollars.