Current reserves $19.40 b
Staff Correspondent: Foreign exchange reserves are decreasing steadily. Nothing can be done. Because the Bangladesh Bank has stopped selling dollars to the government to meet the project expenses. As a result, the gross net reserve (GNR) decreased to $16.40 billion at the end of November. According to the calculations of the International Monetary Fund (IMF), Bangladesh’s usable reserves are OK. But Bangladesh Bank has reserves of $25.02 billion in its own account. Accordingly, the reserve at the end of last June was $24.75 billion. That is, it has increased by $5.35 billion in a period of five months. Currently, it is possible to meet the import expenditure of less than four months. .
According to Central Bank sources, Bangladesh’s proposal for the second tranche of the International Monetary Fund (IMF) loan of $14.7 billion is being taken up for approval at the board meeting of the organization next week. After receiving this installment, the country’s reserves will increase a little. Although Bangladesh has not been able to meet the two conditions of the IMF. On the other hand, it has promised to receive a loan of $327 million from the Asian Development Bank (ADB) to meet the budget deficit. If these two loans are combined, it is expected that the reserves will be $1.08 billion.
Two years ago, in August 2021, Bangladesh’s reserves were the highest in history at $48.04 billion.
It has been reported that from the beginning of the current financial year, the number of dollar sales from the reserve is $5.9 billion, according to which, an average of $1.18 billion has been sold every month. The number of dollar sales until November 2 was $4.53 billion.
According to sources, a record number of expatriates came to the country during the Corona period. Then Bangladesh Bank bought about $8 billion from the market in 2020-21 fiscal year to keep the dollar market and prices stable. As a result, in August 2021, Bangladesh Bank’s own account balance increased to $48 billion. Bangladesh Bank sold $2 billion. In the last financial year (2022-23), it sold $13.58 billion. This trend continues in the current financial year. In the current financial year 2023-24, so far Bangladesh Bank has sold $5.9 billion. From the total reserves of the last 17 months, Bangladesh Bank distributed $48 billion left the market.
Bangladesh Bank is not giving the government importers dollars even now. Banks are the last refuge for fake dollars. Due to the dollar crisis, the banks have reduced the import letters of credit. Currently, they are facing problems in opening letters of credit to all small and big importers.
Meanwhile, in order to increase reserves, Bangladesh Bank is buying dollars from the banks which are in dollar crisis. Again, the central bank has forced the banks to reduce the official price of the dollar in the crisis. As a result, the buying and selling price of the dollar has been reduced by 75 paisa in the current quarter. Former Chief Economist of Dhaka Office Zahid Hossain said, there is a need to increase export and remittance collection at this time. Moreover, Economist Zahid Hossain has advised to move away from ABB and BAFEDA based policy on dollar price change. It is very urgent to resolve the financial crisis and bring the market to a normal level. Therefore, it is best to leave the foreign currency market after this. Yes. But the decision of Association of Bankers Bangladesh and Bangladesh Foreign Exchange Dealers Association is destabilizing the market after a few days, said the head of Dhaka branch of World Bank.
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