In just one and a half months, Bangladesh’s foreign reserves have risen above $20 billion again, thanks to an increase in remittances, according to Bangladesh Bank spokesperson Husne Ara Shikha.
On November 6, the reserves were $20 billion but later dropped below $19 billion in early December. Under the interim government, the dollar exchange rate was fixed at 120 taka, keeping reserves stable between $19 and $20 billion.
Since the fall of the Sheikh Hasina government on August 5, Bangladesh Bank stopped selling dollars from reserves. Recently, imports increased, raising the dollar price, with banks spending up to 127.70 taka per dollar for remittances. The rise in remittances has improved dollar supply, allowing banks to open new import letters of credit (LCs).
Rising remittance inflows have improved dollar availability, enabling banks to relax restrictions on opening new Letters of Credit (LCs). According to Bangladesh Bank, imports grew by 1% between July and October this fiscal year, a significant recovery from the 10% decline in the same period last year. Remittances have grown by 30%, while exports have risen by 8%, highlighting a positive shift that is boosting economic momentum and growth.
Source: Ittefaq
