2024-05-11 11:55:59
Bangladesh’s foreign exchange reserves are decreasing further. Higher dollar consumption in import expenditure and foreign debt repayment than other foreign income including exports has had a negative impact on the reserves. Due to this, the reserve has decreased.
Meanwhile, as per the deadline set by the International Monetary Fund (IMF), the net foreign exchange reserve target has been reduced from USD 2,110 million to USD 1,475 million by June 30.
Bangladesh Bank’s report released on Thursday (May 9) showed that the country’s foreign exchange reserves stood at 2,527 million US dollars on May 8. According to International Monetary Fund (IMF) accounting method BPM-6, the reserves are now $1,982 million (19.82 billion). At the same time of last month i.e. last April 8, according to BPM-6, the reserves were 20.11 billion or 2 thousand 11 billion US dollars. Total reserves on that day were 2 thousand 539 million dollars.
Foreign exchange reserves are created with the dollars received from remittances, export earnings, foreign investments, loans from various countries and international organizations. Again, the foreign currency goes through the expenditure incurred in various sectors including import expenditure, loan interest or installment payment, salary and allowance of foreign workers, tourist or student education. Thus, the dollar remaining after income and expenditure is added to the reserve. Overspending reduces reserves.
Due to high prices of fuel and various products in the international market, the cost of imports has not decreased. Besides, global trade has not recovered after the Corona pandemic. Later, after the start of the Russia-Ukraine war, the country’s dollar crisis has become evident since March last year; which is still ongoing. This crisis is increasing day by day. The central bank is regularly selling dollars from the reserve to bring stability to the market. As a result, one of the most important indicators of the economy is continuously decreasing.
According to the data of Bangladesh Bank, 10 years ago at the end of June 2013, foreign exchange reserves were only 15.32 billion dollars. Five years ago it was 33.68 billion dollars. From there, foreign exchange reserves increased to 39 billion dollars on September 1, 2020. A new milestone of $40 billion was crossed on October 8 of that year. After that, it increased even in the midst of the Corona epidemic, on August 24, 2021, Bangladesh’s foreign exchange reserves set a record. That day the reserve stood at 48.04 billion dollars or 4 thousand 804 million dollars. After that, the country fell into dollar crisis. At the same time, the reserves have been decreasing since last year.