Foreign exchange reserves crossed 21 billion

Economy Desk: Even two months ago, direct foreign loan-currency assistance had to be taken to prevent the decline of the depreciating foreign exchange. Reserves exceeded 21 billion at the beginning of March due to the impact of internal currency management system swaps and expatriate income. This information has been highlighted in the report of Bangladesh Bank on Thursday (March 07).

The latest foreign exchange reserves in Bangladesh stand at 21.15 billion or 2,115,268,000 US dollars (BPM-6). A month ago, the amount of this reserve was 1 thousand 995 crore 60 lakh 60 thousand US dollars (BPM-6). In one month, the reserve increased by 1.19 billion dollars or 119 crore 66 lakh 20 thousand US dollars. At the beginning of March, the amount of foreign currency reserves or gross reserves stood at 26.33 billion dollars or 2,633 million 94,800,000 US dollars. A month ago it was 25.08 billion dollars or two thousand 508 million 9960 thousand US dollars. It has not been possible to maintain the foreign exchange status quo without International Monetary Fund (IMF) loans, foreign borrowing or reining in imports over the past year to stem the decline of dwindling foreign exchange reserves. In early March, it was possible to exceed 21 billion in currency through expatriate income and currency swaps between banks without IMF loans or other external borrowing.

Foreign currency income of expatriates through banks is delivered to their families in local currency. And foreign currency is stored in respective banks. A part of which is sold to Bangladesh Bank. It is a means of increasing reserves. Swap is the exchange of dollars from banks' nostro accounts (domestic banks' accounts abroad). which are traded in short term. Bangladesh Bank has been able to increase gross reserves through swaps. Through this, the foreign exchange does not increase as a whole, it goes from the commercial banks to the central bank. Banks take back when necessary.