Forex reserve crosses record $48 billion

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

As per the Bangladesh Bank data, the reserves stood at $48.04 billion as of August 24.

Bangladesh Bank Spokesperson Md Serajul Islam told The Business Post that the reserve reached the new record high owing to several reasons, such as the upward trend in remittance and when the multinational lenders released funds.

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

Throughout 2020, the forex reserve broke record in several times as foreign exchange flowing into the country was not being spent on importing goods due to the sluggish economy created by the Covid-19 pandemic. 

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

The reserve was $18.031 billion from July 1, 2019 to June 28, 2020, the central bank data shows.