Bangladesh Bank’s foreign exchange reserves increased due to remittances or expatriate income around Eid-ul-Azha. However, gross reserves have yet to cross the $25 billion mark. At present the gross reserve is 2 thousand 478 crores or 24.78 billion dollars.
According to the latest data of Bangladesh Bank, the gross reserve is 2 thousand 478 crores or 24.78 billion dollars as of June 19. Net reserve is 1 thousand 952 crores or 19.52 billion dollars. As of June 12, gross reserves were 24.52 billion dollars, net reserves were 19.21 billion. In one week, gross reserves increased by 26 million dollars and net reserves increased by 318.2 million dollars. At the beginning of this month, on June 5, gross reserves were 24.23 billion and net reserves were 18.62 billion.
According to the data of the central bank report, the reserve was 21.50 billion dollars in the last financial year 2013-14. Then the reserve started to increase. It increased to 25.02 billion dollars in 2014-15 financial year, 30.35 billion dollars in 2015-16 financial year, 33.67 billion dollars in 2016-17 financial year, 32.94 billion dollars in 2017-18 financial year, 32.71 billion dollars in 2018-19 financial year. Dollars stood at 36.3 billion dollars in the fiscal year 2019-20. In the next financial year (2020-21), the reserve reached 46.39 billion dollars.
In August 2021, reserves rose to $4,800 million (48 billion), which was the highest record in Bangladesh’s history. But it did not last even four months. It started going down again slowly. The reserves fell to $41.82 billion in FY 2021-22 and lastly in FY 2022-23 to $31 billion.
Despite the drop in export earnings, dollar inflows to banks have increased due to record remittances sent by expatriates on the occasion of the upcoming Eid al-Adha. Expatriate Bangladeshis sent foreign currency equivalent to Tk 19,432 crore in 14 days before Eid (first of June). On the other hand, there is a balance in the cost of the dollar as export earnings and import costs decrease. The amount of remittance remains outstanding. Due to which the flow of dollars in banks has increased. For this reason, the central bank bought dollars from commercial banks. On the contrary, it has provided cash to the banks. Banks need extra money to meet the needs of customers during Eid. As a result, he has settled the demand by selling dollars and taking bank money. Reserves increased due to dollar purchases.
Meanwhile, at the end of this month, the third tranche of the IMF loan may be available for $115 million. If you get this money, the reserve will increase.