Home Uncategorized Reserve lowered $ 1 m in 7-day
Uncategorized - November 18, 2023

Reserve lowered $ 1 m in 7-day

Staff Correspondent: Bangladesh has been suffering from dollar crisis for about a year and a half. The situation is getting more complicated day by day. The central bank is selling dollars every day in the market to deal with the crisis. As a result, the country’s foreign exchange savings or reserves are steadily decreasing.
Earlier this month, the foreign exchange reserve was $ 25 billion. Banks paid remittance at high prices in the first week of the month, but the reserve rose to $ 25 billion. But as the dollar continues to sell, the reserve has started to decrease again. The reserve has now stood at $ 19billion in a week.
The image of the reserve was obtained from a report by Bangladesh Bank on Thursday (November 7th). According to the report, on November 7, the Gross Reserve of Bangladesh Bank fell to $ 2,220 crore ($25.25 billion). However, according to the terms of the IMF and international rules, there is a difference of $ 1.5 billion with the calculation of Bangladesh Bank on the basis of the BPM-1 Mathed. That is, according to the BPM-1 manual, the Gross Reserve is $ 19.5 billion.
At the beginning of the fiscal year 2021-27, the Gross Reserve was $25 billion and BPM-1 was $ 26.5 billion. The reserve has dropped by about $ 1 billion in just six months.
According to the Balance of Payments and Investment Positions Manual (BPM-1) of the world, Bangladesh Bank in the reserve calculation includes loan guarantee given to the aircraft along with various funds, deposits to the Pigeon Port Authority, deposits to the Islamic Development Bank and invest in investment. Not Bangladesh Bank had previously been showing them as a reserve. Due to the exclusion of these calculations, the reserve reduced $ 9.5 billion.
However, there is another calculation of the net or actual reserve of Bangladesh Bank, which is only given to the IMF. Are not expressed. According to the sources, the real reserve of the country will now drop to $ 1 billion. The amount of reserves now with the Bangladesh Bank can be met with only three months of import costs. Usually, a country has to have a minimum of 6 months of import cost equal to the cost. Bangladesh is now at the end of that standard. One of the indicators of the economy of a country is foreign currency reserves or reserves.
Officials of the central bank said that due to the crisis, a lot of dollars are being sold in the market from the reserve. Akur bill was also paid this month. Exports and remittance flows are low in reserves mainly for these reasons.
Reserves how to make
Remittance, export earnings, foreign investment, dollars from various countries and international organizations are created with foreign exchange reserves. Again, foreign currency goes through the cost of import, loan interest or installment, salaries of foreign workers, tourists or students. Thus, the dollar that remains after income and expenditure is added to the reserve. If the cost is more reduced, the reserve is reduced.
Due to the high prices of energy and various products in the international market, the cost of import has not decreased. Besides, the global trade could not turn around after the coronation. Later, after the start of the Russia-Ukraine war, the dollar-crisis has been evident in the country since March last year; Which is still continuing. This crisis is increasing day by day. The central bank is selling dollars regularly from the reserve to bring ‘stability’ to the market. So far, this fiscal year, $ 120 million ($ 1 billion) has been sold. As a result, this index is decreasing one of the most important and touching indicators of the economy.
The International Monetary Fund (IMF) approved Bangladesh’s $ 1 million loan proposal to meet the conditions of meeting the conditions of the country in the late January this year. Bangladesh received $ 1 crore 12 lakh 5 thousand dollars in the first installment of this loan last February. One of the conditions was to keep the actual reserve $ 2,5 billion in June, it was expected to be kept at $ 2,500 in September and $ 2,500 in December. But the company later relaxed these conditions.
According to Bangladesh Bank data, the reserve has dropped at this stage since last year. That was consistently growing before that. At the end of June 27, the foreign exchange reserve at the end of June 27 was only $ 9.22 billion. Five years ago, it was $ 9.5 billion. From there, on September 7, 2021, the foreign exchange reserve reached $ 1 billion. On October 1 of that year, the $ 1 billion crossed the new milestone. Then it increased in the Carona epidemic, but the reserve record of foreign currency in Bangladesh is an average of August 28, 2021. On that day, the reserve rose to $ 5 billion or $ 4 billion. The reserve has been steadily declining since last year in the dollar crisis.
What is Aku
The Asian Clearing Union (Aku) is an inter -state transaction settlement system. Through this, the responsibility of transactions between Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka. Iran’s capital Tehran

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