Forex reserves cross $11b

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Forex reserves cross $11b
Bdnews24.com . Dhaka

Central bank’s foreign currency reserves have once again crossed $11 billion mark.

On Tuesday, the reserves were at $10.94 billion, while on Wednesday, they swelled to $11.05 billion.

The reserves had crossed this mark once in October last year but went down to hover between $10 billion and $11 billion as import spending increased.

Bangladesh Bank governor Atiur Rahman said the foreign currency spending had increased following an increase in import demand in the current fiscal.

‘But despite the high spending, the reserve is above $11 billion, which shows that the economy is strong.’

The central bank is yet to publish import stats for March, but for the first eight months of this fiscal, import spending grew by 41.79 per cent.

Atiur said the reserves were enough to provide for six months of import spending.

By international standards, a country should have foreign currency reserves enough for paying three months of import spending.

Bangladesh Institute of Development Studies (BIDS) senior research director Zaid Bakht said though there was pressure on the reserves, but there was not much to be worried about.

‘The current increasing trend in export earnings will presumably go on. Also, a possible boro bumper harvest will also decrease import spending, thus reduce the pressure on reserves.’

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