Home Bangladesh Reserves decreased by $61 m in a day
Bangladesh - May 18, 2023

Reserves decreased by $61 m in a day

Staff Correspondent: In the first 12 days of this May, expatriate remittances in the country through the banking channel are somewhat limited. Due to which the central bank thinks that the remittance has decreased at that time.
Remittances may increase in June even though overall remittances did not increase much this month. Meanwhile, compared to Wednesday, the reserves decreased by $61 million in a one-day gap on Thursday.
Reserves have decreased due to payment of import debt. This information has been revealed in an updated report on remittances of Bangladesh Bank on Sunday.
According to the report, in the 12 days from the beginning of May to Thursday,
remittances reached $773 million. The banking working day was 8 days during the said period. During the month of fasting and Eid-ul-Fitr, remittances in April reached $1683.4 million. In April last year, remittances came in at $201 million. Compared to that, remittances decreased by 16 and a half percent last month. Compared to March, remittances have come down by about 17 percent. May decrease this month too. Because after Eid, the flow of remittances slows down.
Meanwhile, to increase the flow of remittances in the banking channel, the price of the dollar increased by one taka from Tk 107 to Tk 108 in early May. Along with this, expatriates are getting two and a half percent more as incentives from the government. Altogether, expatriates are getting Tk 110.70 for every dollar of remittance.
Meanwhile, if you send it to Hundi, you will get more price. Tk 112 to Tk 113 per dollar in curb market or hundi. Hundi market have developed a network in areas where expatriates live abroad. They also have a network in the country. As a result, hundi bazaars are quickly sending money to relatives of expatriates in the country.
Meanwhile, the pressure on the dollar is increasing in the country due to the decrease in remittances in the banking channel. The supply of dollars from the reserve has to be increased to meet the cost of imports. The reserve is decreasing. Reserves fell to $2,977 million on Monday after the Asian Clearing Union (ACU) paid off $1.18 billion in debt at the start of May.
On Wednesday, the reserve rose to $3,960 million when another $50,700,000,000 were discounted for budget support from the World Bank. On Thursday, it fell again to $3,350 million. Reserves fell by $61 million in a single day. It is feared that if the remittance flow continues to decrease like this, the reserves may soon fall back to the $29 billion mark.

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