After three and a half months, Bangladesh’s foreign exchange reserves have almost surpassed $20 billion by the BPM6 definition, according to Bangladesh Bank.
According to central bank spokesperson Husne Ara Shikha, gross reserves currently total $24.98 billion.
On September 4th of this year, the value of Bangladesh’s reserves was $20.55 billion. Later, it had fallen below $20 billion for a few months.
By the BPM6 definition, reserves were $20.16 billion as of December 19.
Reserves dropped to $18 billion last month following the Asian Clearing Union’s payment of import bills.
To meet IMF requirements and boost net reserves, the central bank is now purchasing dollars from commercial banks, a senior Bangladesh Bank official told bdnews24.com.
The rise in remittances and export revenue is also contributing to the increase in reserves. The monthly revenue from remittances via banking channels has exceeded $2 billion for five months in a row.
Private banks are requesting dollars from foreign exchange houses at rates that range from Tk 126.50 to Tk 127.70, which is higher than Tk 120 just a month ago, as the central bank purchases cash.
Prior to Ramadan in February, commercial banks are also opening more letters of credit, which is increasing demand for dollars.
These elements working together have caused the dollar’s exchange rate to keep rising.
Bangladesh Bank asked 13 banks to explain why they were buying dollars at prices higher than the fixed rate.
