Bangladesh’s Forex Reserves Fall Below $21 Billion Mark1 min read
Bangladesh’s foreign exchange (forex) reserves have fallen below $21 billion, registering at $20.96 billion, a decrease from the $21.05 billion reported on October 4, as reportedly outlined in data released by the Bangladesh Bank. This noteworthy decline signifies a significant reduction from the nation’s forex reserves, which were around $40.7 billion in August 2021 and $33.4 billion by the end of FY22, according to information provided by the International Monetary Fund (IMF).
The primary sources of US dollars for Bangladesh, namely export and remittance receipts, have fallen below anticipated levels. State-run banks, in particular, are accessing US dollar support from the central bank to meet import payment obligations for entities such as the Bangladesh Petroleum Corporation, Bangladesh Agricultural Development Corporation, and Bangladesh Chemical Industries Corporation, contributing to the declining reserves.
In the first three months of the current fiscal year, FY24, Bangladesh Bank disbursed a total of $3.75 billion from the reserves to state-owned banks. During the preceding fiscal year, FY23, the central bank released $13.58 billion from reserves to mitigate the dollar shortage and maintain the stability of the Taka against the US dollar.
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