Forex reserves surpass $31b mark after two months

The foreign exchange reserves of Bangladesh have exceeded the $31 billion mark after a span of two months, primarily attributed to the receipt of budget support funds from international organisations.

As of Monday, the reserves stand at $31.15 billion, rebounding from falling below $31 billion on 30 April earlier this year.

Remarkably, the forex reserves soared past $30 billion on 21 June this year, signifying an increase of $1 billion within a mere five days.

A senior official from the central bank informed TBS that the Asian Development Bank and the Asian Infrastructure Investment Bank have each contributed $400 million to the Bangladesh Bank this week. Additionally, the International Development Association (IDA), a part of the World Bank group, extended $125 million in support to the country.

The official also highlighted that the rise in reserves can be attributed to an upsurge in remittance due to the approaching Eid-ul-Adha festival.

Between 1-25 June, wage earners' remittances amounted to $2.02 billion.

In the ongoing fiscal year, up until 25 June, Bangladesh has received a total of $21.43 billion from offshore workers, surpassing the figure of $20.48 billion during the same period last year.

During the fiscal year 2022-23, the Bangladesh Bank has sold $13.58 billion from its reserves.

The central bank usually sells dollars to finance government LC payments and procure essential goods.

The official further added, "We currently have $3.64 billion of market liquidity, which is not included in the reserve. This amount is held by commercial banks."

Following the government's payment of $1.1 billion in import bills to the Asian Clearing Union (ACU) for March and April, the reserves declined to $29.7 billion on8 May.

However, the reserves rebounded on 10 May, reaching $30.36 billion, marking a significant increase from $29.78 billion just a day earlier.