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Bangladesh - Bank & Finance - Management - August 7, 2023

Reserve decreased by more $5 m

Staff Correspondent: The country’s foreign exchange reserves are decreasing at a steady pace. In the space of a week, the reserve as a gross decreased by $5 million. A net decrease of $ 1.0 million. Net reserves fell as another $40 million was withdrawn from reserves and invested in various funds. In recent times, commercial banks have to pay dollars from the reserves due to debt repayment and import debt settlement. The reserve is decreasing. Besides, both export earnings and remittances decreased in July compared to June. This has increased the pressure on reserves.
Gross reserves of the country were $2,964 billion on Thursday. July 26 was $2,969 million. In that one week, the gross reserve decreased by $5 million. During the same period, net reserves decreased from $2,331 million to $2,330 million.
Meanwhile, steps have been taken to increase export earnings and remittances to reduce pressure on reserves.The inflow of remittances from the UAE has increased due to some measures taken against hundi. In July, the export income of the country was $4.59 billion. It was $503 million in June and $485 million in May. Accordingly, the export income decreased in July compared to May and June. However, it has increased compared to April. Again, from last November to March, the export income was above 5 billion dollars per month. Accordingly, the export income has decreased compared to that month. However, the income has increased by 15.26 percent compared to July last year.
Meanwhile, last July, remittances reached $197.30 million. 220 million dollars came in June. $210 million came in July last year. Compared to last June and July last year, the remittance flow has decreased in July. Both remittances and export earnings fell, adding to the pressure on reserves. Meanwhile, exemptions for foreign investment and grants have also decreased.

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