Bangladesh Forex Reserves Cross $25 Billion
Following a record inflow of remittances this month, Bangladesh Bank has provided encouraging news on the Bangladesh forex reserves which reached $25 billion before the end of March. The country’s gross reserves have increased to $25.44 billion, the central bank said Thursday, March 27.
This follows a sharp rise in remittance inflows. Which hit $2.94 billion in the first 26 days of March, the largest this month has ever seen in the history of the nation. Bangladesh presently has $20.29 billion in net reserves, according to the Balance of Payments and International Investment Position Manual (BPM6), which is based on the International Monetary Fund’s (IMF) methodology. After subtracting short-term obligations from gross reserves, the net reserve amount is determined.
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Bangladesh briefly lowered its gross reserves to less than $25 billion and its net reserves to less than $20 billion on March 9 when it paid $1.75 billion to settle import invoices through the Asian Clearing Union (ACU). The country’s reserves under the BPM6 benchmark fell to $19.75 billion following this payment, although they have since risen beyond the $20 billion threshold.
In order to refill the reserves and provide the economy much-needed respite before Eid, the spike in remittances has been essential. Officials at the central bank are still hopeful that more inflows will contribute to the foreign exchange reserves’ further stabilization.
Arif Hossain Khan the Executive Director and spokesperson for Bangladesh Bank, encouraged confidence in the nation’s foreign financial situation while confirming the most recent reserve data in a media interview. The economy has benefited from the record remittance inflows, which have given hope despite persistent financial difficulties and coincided with the approaching Eid celebrations.
