Forex reserve crosses record $48 billion

Bangladesh’s foreign exchange reserve hit a new record of $48.04 billion on Tuesday.

Bangladesh Bank data show the reserves stood at $48.04 billion.

BB Spokesperson Md Serajul Islam told The Business Post that the reserve reached the new high thanks to factors such as upward remittance trend and multinational lenders releasing funds.

The last record high of the reserve stood at $46 billion in June this year.

Throughout 2020, the forex reserve broke record several times as foreign exchange flowing into the country was not being spent on importing goods amid Covid-19 pandemic.

Experts said reserve growth is a sign of the economy’s strength, indicating the nation’s capacity to clear foreign debt, but its management can be a challenge.

The reserve was $18.031 billion from July 1, 2019 to June 28, 2020, BB data show.