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The Bangladesh Bank gained Tk 1,484.34 crore from revaluation of its gold assets for FY23. Such income reached 38.74 per cent higher compared to the year-on-year figure of Tk 909 crore posted in FY22, shows the central bank annual report.
“Revaluation gain or loss of foreign currencies, gold, silvers, financial instruments and property, plant and equipment (PPE) arises from the changes in fair value of assets and currency exchange rates following the international financial reporting standards,” read the report.
It adds that the Bangladesh Bank has 4,51,168.61 troy ounces of gold and 1,68,728.15 troy ounces of silver under its holding.
Of the total holding, 188,927.51 troy ounces of gold is held at the Bank of England – which is subjected to lending operation, and 75,966.20 troy ounces of gold and 168,728.15 troy ounces of silver is stored at the own local vault of Bangladesh Bank.
Such physical gold owned by the Bangladesh Bank is an element of foreign reserves, which is consistent with the global practice followed by most of the central banks around the world.
The report stated that in managing its investment portfolio, the central bank lends part of its gold holdings to first-class foreign financial institutions. It receives interest in return. Gold lending transactions are effected on a secured basis.
Bangladesh Bank’s gross foreign exchange reserves comprises major global currencies (G-7), gold and Special Drawing Rights (SDR).
At the beginning of FY23, foreign exchange reserves stood at $41.83 billion, which dropped to $31.20 billion at the end of the fiscal year. The regulator made Tk 47,268 crore profit in FY23, an increase by 61.61 per cent from Tk 29,247 crore in FY22.
