Bangladesh’s forex reserves fall to $33.86bn as central bank sells more dollars

The central bank continues to sell dollars to banks as the demand for the greenback remains high

Bangladesh’s foreign currency reserves have dwindled to $33.86 billion as the central bank continues to sell dollars to the banks with the demand for the greenback running high.

The Bangladesh Bank sold $71 million to the banks on Wednesday, said its spokesman Abul Kalam Azad.

The selling of dollars by the central bank in the first five months of this fiscal year increased to $6.05 billion after the financial year began with reserves of $41.82 billion.

The central bank has been selling dollars to keep imports of essentials normal and the foreign currency market stable.

In May 2020, forex reserves were $33.4 billion. It increased gradually to $48 billion in August 2021 before rising import costs outran falling exports plus remittances amid the Russia-Ukraine war.

Imports fell to $4 billion against a monthly average of $6.44 billion this fiscal year, according to the central bank, as the government clamped restrictions on bringing in goods that are not considered essential.

The government hopes the situation will normalise in early 2023 with the curbs in place.