Bangladesh forex reserves cross $33bn again as incentives boost remittance

Bangladesh’s foreign exchange reserves have crossed the $33 billion for the first time after two and a half years with government incentives driving remittance inflow.

Abdur Rahim Badal Chief Economics Correspondentbdnews24.com
Published : 1 March 2020, 10:32 PM
Updated : 2 March 2020, 12:14 PM

The Bangladesh Bank’s foreign currency reserves reached the mark on Sunday despite falling exports.

The reserves hit a record high of $33.65 billion two months after crossing the $33 billion mark in 2017.

Besides the rise in remittance inflow, analyst Ahsan H Mansur said a drop in import due to the coronavirus outbreak in China and beyond has factored in the reserves reaching the mark.

The outbreak will affect remittances as well if it spreads further in the Americas, Europe and the Middle East, he warned.

Bangladeshi migrant workers sent home around $12.5 billion in the first eight months of the current fiscal year, with about $1.5 billion of the figure in February.

The remittance inflow in the July-February period is 20 percent higher than the amount received by the country the same period last fiscal year.