Metropolis Desk-
By the end of January, Bangladesh’s foreign exchange reserves had dropped below USD20 billion, according to the most recent data from the central bank.
The country’s foreign exchange reserves, as determined by the International Monetary Fund, were $19.94 billion on January 31, according to data from Bangladesh Bank (BB), down from $17.20 billion on December 31.
By the end of January, according to BB, the gross reserve was $25.09 billion.
The gross reserve can only be used after the investment is realized, whereas the reserve determined using the IMF’s manual method for balancing payments and investment position is immediately usable.
Forex reserves sufficient to cover six months’ worth of import bills are deemed sufficient for a developing nation such as Bangladesh.
However, central bank officials stated that Bangladesh can cover its import bills for roughly four months with its current reserves.
In August 2021, Bangladesh’s gross foreign exchange reserves reached a record high of $48 billion.
The central bank has loosened regulations and implemented other strategies to attract more remittances from the millions of Bangladeshis who work and reside overseas to increase the country’s declining foreign exchange reserves.
