Saturday | 11 January 2025 | Reg No- 06
বাংলা
   
Saturday | 11 January 2025 | Epaper

Reserves reach $20b as BB buys USD to meet IMF conditions

Published : Sunday, 22 December, 2024 at 12:00 AM  Count : 280
Foreign exchange reserves have risen sharply within a week as the central bank purchased dollars from commercial banks to meet the International Monetary Fund, or IMF, conditions.

Bangladesh Bank said foreign exchange reserves stood at $19.95 billion under the BPM-6 method, up from $19.20 billion on Dec 11-an increase of $753 million in a week.

A senior central bank official told bdnews24.com: "Bangladesh Bank wants to increase its net reserves to $15.30 billion by the end of December in compliance with the IMF conditions.

"That is why it is buying from commercial banks instead of selling dollars."

When asked if the reserves were rising due to dollar purchases, Bangladesh Bank Executive Director and Spokesperson Husne Ara Shikha told bdnews24.com: "I will not explain how the reserves are increasing."

The central bank's dollar purchases have caused the value of the US currency to rise against the taka.

On Wednesday, some private banks bought remittances at Tk 126.50 to Tk 127, up from Tk 120 a month earlier, while money exchanges sold dollars at even higher rates.

Another official said: "Many banks are selling dollars to the central bank instead of the interbank market, and foreign exchange houses are also selling dollars to banks at higher rates."

Last month, the reserves fell to $18 billion due to the payment of import liabilities through the Asian Clearing Union, or ACU.

As remittances and export earnings flowed in, reserves rose, though they remained below levels seen when the Sheikh Hasina government fell in August.

Bangladesh Bank reported $20.48 billion in reserves on Jul 30, a figure that remained unchanged on Aug 21.

During the COVID-19 pandemic in 2020, reserves peaked at a record $48 billion.

However, rising global fuel and food prices, coupled with the Ukraine war, drove up import costs, leading to a steady decline in reserves since 2022.

In the past two fiscal years, Bangladesh Bank sold dollars from reserves to facilitate government Letters of Credit, or LCs, for commercial banks, further depleting foreign exchange reserves.

Following Hasina's departure, Ahsan H Mansur assumed the role of Bangladesh Bank governor.

At a press conference, he announced a halt to dollar sales from reserves, saying this would boost reserves and eliminate the risk of further decline.

However, reserves have yet to cross the $20 billion mark even after four months, despite repeated assurances from Bangladesh Bank about their growth.
    —bdnews24.com



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