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Forex reserves fall to $21.07b

Staff Correspondent
12 Oct 2023 22:04:58 | Update: 12 Oct 2023 22:17:08
Forex reserves fall to $21.07b

Country’s foreign exchange reserves fell to $21.07 billion on October 11, according to the latest data released by Bangladesh Bank on Thursday.

At the same date in the previous year, the amount was $36.40 billion. As a result, the country lost $15.33 billion in the last one year.

Bangladesh has been facing USD crisis since the beginning of last year due to high import payments. Besides, lower remittance and higher imports led to increased demand for the greenback.

So, the central bank has to supply the USD in the currency market and such support is still continuing as the demand for the US greenback has increased.

Currently, the inter-bank USD rate is Tk 110.5. However, the price of USD in the open market is Tk 119.

The central bank sold USD to banks mainly for imports of fuel, fertiliser and food. The government has been providing assistance in the form of selling dollars from its forex reserves for importing some items. This has exacerbated the dollar crisis in the country.

Bangladesh reportedly missed its June 30 target for net foreign exchange reserves set by the International Monetary Fund as part of the conditions for the country’s $4.7 billion loan program with the Washington-based lender.