how Reserves decreased by 6 billion US dollars

Own Correspondent: Import expenditure has increased in the country. Foreign exchange earnings from exports and remittances are declining compared to that. As a result, the foreign exchange reserves have decreased by about 6 billion in a matter of months. In August last year, the reserves increased to over 46 billion. The reserve was. 44.11 billion on May 9 due to increase in import expenditure. About 224 million was paid to the Asian Clearing Union (ACU) on May 10 from this reserve. Since then, foreign exchange reserves have fallen to. 41.95 billion.

With the current foreign exchange reserves, it is possible to cover 6 months of import expenses. In August last year, Bangladesh had reserves ( 46 billion) to cover six months of import costs.

Meanwhile, LC margin has been fixed at 75 per cent for imports of luxury goods including cars. The central bank is selling a lot of dollars to commercial banks so that no one fails to pay the import cost. So far in the current financial year, the amount of dollar sales has stood at 502 crores. On the other hand, more than Tk 43,000 crore has come to the central bank from the market.

At the end of June 2013, the reserves were only. 15.32 billion, according to the central bank. In 2016, it more than doubled. Reserves at that time were 33.6 billion. In August 2021, reserves rose for the first time to 46.08 billion. However, the reserves have been steadily declining over the last few months. On May 8, the reserves fell to. 43.99 billion. After paying 2.24 billion on May 10, reserves fell below 42 billion.

The main reason for the decline in foreign exchange reserves is the decline in remittances with a sharp rise in import costs.

Earlier, import expenditure had increased by 43.6 per cent to 8,152 crore in the first nine months till March last year. During the same period, exports increased by 32.92 percent to 3.62 billion. At that time, remittances fell by 16.64 percent to 1.53 billion.