B Mirror Desk : Bangladeshis residing overseas are increasing their remittances to support their families and relatives during the significant Muslim religious festival. Consequently, March has seen a record influx of remittances. Simultaneously, the export sector in Bangladesh is showing positive growth, contributing to an increase in the country’s foreign exchange reserves.
As reported by the central bank, the gross foreign exchange reserves stood at $25.44 billion as of March 27. According to the International Monetary Fund’s BPM-6 accounting framework, this figure has risen to $20.30 billion. Nevertheless, the available reserves remain at $15 billion.
Previously, following the payment of the Akur bill on March 9, the gross foreign exchange reserves had decreased to $25 billion, with BPM-6 reporting $19.70 billion. However, the surge in remittances and favorable export performance during Ramadan has led to a recovery in reserves.
Net or actual reserves are calculated by deducting short-term liabilities from the total reserves. Additionally, the Bangladesh Bank maintains another category of reserves known as expendable reserves, which is not officially disclosed. This category is determined by excluding the dollars allocated in the IMF’s SDR account, foreign currency held in banks’ foreign exchange clearing accounts, and the Akur bill.
As per the relevant sources, the country’s current usable reserves stand at $15 billion. This amount allows for the coverage of three months’ worth of import expenses at a rate of $5 billion per month. Typically, it is advisable for a nation to maintain reserves that are at least equivalent to three months of its import costs.
