Highlights:
- Bangladesh’s gross foreign currency reserves have risen above $26 billion.
- Reserves fell below $26 billion earlier this month after $1.5 billion ACU payment.
- Growth in remittance inflow and export earnings contributed to the increase.
- Central Bank purchases of dollars from commercial banks also boosted reserves.
Gross Reserves Cross $26 Billion
Bangladesh Bank’s total (gross) foreign currency reserves have again surpassed the $26 billion mark. Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan informed reporters of this update on Wednesday evening.
According to IMF’s BPM-6 accounting method, the gross reserves now stand at $26.08 billion.
Earlier Dip in Reserves
Earlier this month, after Bangladesh made a $1.5 billion payment to the Asian Clearing Union (ACU), the reserves fell below $26 billion, registering at $25.39 billion.
Read More: Bangladesh Receives $1.67 Billion Remittance in First 16 Days of September
Reasons for Reserve Growth
Senior officials at Bangladesh Bank said that an increase in remittance inflow and export earnings has led to higher dollar availability in commercial banks. After selling dollars to other banks, the banks also sell excess dollars to the central bank, which adds to the reserve.
Arif Hossain Khan told,
“রেমিট্যান্স প্রবাহ বৃদ্ধি ও কেন্দ্রীয় ব্যাংক নিলামের মাধ্যেম বাণিজ্যিক ব্যাংকগুলো থেকে ডলার কেনার কারণে রিজার্ভ বাড়ছে। এজন্য আকু পেমেন্ট পরিশোধের পর রিজার্ভ আবার বাড়ছে।”
Translation:
“The reserves are increasing due to the rise in remittance inflows and the central bank buying dollars from commercial banks through auctions. That is why the reserves are rising again even after making the ACU payment.”
With continued growth in remittances and export revenue, analysts expect Bangladesh’s foreign currency reserves to remain stable above the $26 billion mark, strengthening the country’s financial stability.
Source: TBS
