Forex reserves hit $20 bln mark

Bangladesh’s foreign exchange reserves have reached yet another milestone by crossing $20 billion-mark, mainly due to buoyant remittance flow and declining import, the central bank officials say.

Abdur Rahim Badalbdnews24.com
Published : 10 April 2014, 11:12 AM
Updated : 11 April 2014, 04:31 AM

At a press conference on Thursday, Bangladesh Bank’s Deputy Governor Abu Hena Md Raji Hasan said the loan flow in private sector as well as direct foreign investment has increased.

“The import cost also came down because of the declining cost of consumer goods in the international market leading to the rise in foreign currency reserves,” he said.

The reserves stood at $20.3 billion at the end of the week, the second highest among the SAARC countries after India which has a reserves of over $300 billion.

Responding to a query, Hasan said it is possible to invest in the Padma bridge project from the reserves. “Foreign currency can be supplied [for the project] if the government wants,” he said.

Bangladesh’s reserves had reached $19 billion for the first time in February but came down after repaying the Asian Clearing Union (ACU) dues on Mar 5.

The reserves again crossed $19 billion in March driven by an increased export income and a $1.273 billion remittance, the third highest in Bangladesh’s history.

Hasan said it will be possible to foot import bill of over six months with the current reserves.

“The exchange rate of Taka is stable against the dollar because of various timely steps taken by the Bangladesh Bank,” he said.

“The export income is rising and there has also been a satisfactory increase in the expatriates’ income,” the deputy governor added.