Gross forex reserve reaches $20 billion: Cenbank
Highlights -
- Central bank gave corrections but the reserve amount remains at $20b
- Government stopped selling dollars, aligned dollar prices with market demand
- Imports grew 1%, remittance 30%, and exports 8% during July-October
- LC openings eased
The country's gross foreign exchange reserve reached $20.17 billion on 23 December after one and half months thanks to a high inflow of remittance.
Husne Ara Shikha, spokesperson of Bangladesh Bank confirmed the matter.
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The reserve was determined as per IMF formula based on the Balance of Payments and International Investment Position Manual (BPM6). However, as of BPM5, the gross reserve is $24.99 billion, according to the central bank.
Earlier today, the central bank had informed the media that the gross reserves crossed $20 billion. Later in the evening, the spokesperson said the reserve amount will be $18.56 billion as of 1 December.
Then, at around 7:44pm, Husne Ara Shikha told the media the original figure was, in fact, correct.
"There were some confusions between the figures of gross remittance and gross reserve."
Earlier on 6 November, the reserve was $20 billion but it started to decline slowly and dipped below $19 billion in the first week of December.
The foreign exchange reserve remained stable between $19 billion and $20 billion under the interim government due to raising the dollar price to Tk120 aligning with market demand.
Bangladesh Bank also stopped selling dollars from the forex reserve after the fall of Sheikh Hasina government on 5 August.
In recent weeks, rising import activities caused dollar prices to increase, with banks spending Tk127.70 per remittance dollar.
The availability of dollars, supported by strong remittance inflows, allowed banks to ease restrictions on opening Letters of Credit (LC).
Central bank data shows that imports grew by 1% during July-October of the current fiscal year, whereas it was negative 10% in FY24. During the same period, remittance surged by 30%, and exports registered an impressive 8% growth, further supporting economic activities.
