Forex reserves increase to $42.3bn

The country’s foreign-exchange reserves on Sunday increased to $42.30 billion, as it was at $41.92 billion on May 10.

“Recently, the forex reserves was slight dip below the $42-billion mark, but after that, the reserves crossed $42 billion again and today (Sunday) it is $42.30 billion,” said General Manager of the Forex Reserve and Treasury Management Department Saiful Islam, while talking to Bangladesh Sangbad Sangstha.

Bangladesh had a record $48.02 billion forex reserve in August last year, sufficient to pay import bills for up to one year, but a steady decline has brought it down to the current level.

Due to the Covid-19 impact and the Russia-Ukraine war, costs of product supply and delivery go up. As a result, the Bangladeshi currency taka began losing its value like many other currencies in the world for raising the demand of US dollars.

So, the higher dollar expenditure for imports and other necessities is putting pressure on the foreign exchange reserves.

To resolve the decrease, the government has taken several measures — like putting a bar on civil servants’ foreign tours and pausing the development of projects that require a large number of imported materials.

Saiful Islam welcomed the government measures and informed that the benefit of the measures will come in long term.