Forex reserves on the rise: Cenbank governor assures stability

Bangladesh's foreign exchange reserves are gradually increasing and stabilising, Bangladesh Bank Governor Ahsan H Mansur has said.

"The reserves, which had been depleting by $1.3 billion per month under the previous government, are now seeing a more positive trend," Governor Mansur said in an interview with UNB today (20 October).

"A significant amount has already been paid for fertilisers, electricity, and obligations to Adani-Chevron," he said.

In the past two months alone, the central bank has successfully reduced deferred payments from $2.5 billion to $700 million by paying off $1.8 billion in outstanding liabilities for energy and other essential services.

As of 8 October, Bangladesh's foreign exchange reserves stood at $19.82 billion as per BPM6 calculations, while the gross reserves reached $24.97 billion.

He said that the central bank's primary goal is to eliminate the remaining debt within the next two months, aiming for a debt-free status by November-December. "Once achieved, liquidity in the market is expected to improve."

By settling these dues, the financial pressure on the economy is anticipated to ease, allowing economic activities to accelerate.

The central bank is preparing to secure an additional $10 billion in loans from various international institutions to bolster the economy.

The Governor, however, expressed concern over the country's growing foreign debt, which has now reached $103 billion, with repayment pressures steadily increasing.

Despite this, he urged patience, suggesting that it will take at least a year to navigate through the current debt challenges successfully.