Forex reserves to hit $40 billion by year-end: Governor

Bangladesh Bank Governor Dr Ahsan H Mansur on Wednesday said that the foreign exchange reserve is projected to reach US $40 billion within this year.

Talking to reporters at the Bangladesh Secretariat, the Governor shared an optimistic trajectory for the country's financial health.

He said the reserves are expected to cross the $35 billion mark within the current month, building a stronger foundation for the months ahead.

Dr Mansur acknowledged that the banking and financial sectors have faced massive irregularities in the past, which would take time to fully rectify.

He, however, expressed confidence in the ongoing reform initiatives taken by the current interim government. "The fragility of the economy has not been entirely eliminated yet, but the situation is moving toward stability."

The Governor also expressed hope that the elected government would carry forward these essential reform activities.

Speaking on broader economic indicators, Dr Mansur said that although the target of reducing inflation to 7 per cent has yet to be achieved, the central bank remains firmly committed to bringing it down through sustained policy efforts.

He said containing price pressures continues to be a priority, with measures in place aimed at stabilising the overall macroeconomic environment.

Turning to investment, the Governor underscored the need for the incoming government to adopt effective strategies to boost both domestic and foreign investment, describing it as essential for ensuring long-term economic growth and employment generation.

His remarks came at a time when the central bank has halted the sale of US dollars from its foreign exchange reserves to commercial banks, a move intended to allow the reserve stockpile to grow organically through increased remittance inflows and stronger export earnings.