Forex reserves dip to $35.98b

The foreign exchange reserves of Bangladesh dipped to $35.98 billion on Thursday, due to the central bank’s USD selling spree that began in the last fiscal year, aiming to stabilise the forex market.

The reserve was $36.20 billion on Wednesday, as per BB officials, who also said that the banking regulator sold $60 million to banks on Thursday and over $4 billion from July to October 20 this year.

Forex reserves had fallen below the $40 billion mark last July as Bangladesh settled import payments worth $1.96 billion with the Asian Clearing Union (ACU).

Bangladesh’s foreign exchange reserves rose to an all-time high of $48 billion in August 2021 but declined by $8.67 billion to $39.36 billion in the same period this year due to the USD shortage, and the need for regulator support to stabilise the country’s forex market. Data from the central bank shows that the country’s foreign exchange reserves rose gradually till August 2020. But the Covid-19 pandemic disrupted economic activities after March 2020, causing Bangladesh’s domestic production, investment and import demand to decline.