Forex reserves cross $23b, again | The Daily Star
12:00 AM, April 01, 2015 / LAST MODIFIED: 12:20 AM, April 05, 2015

Forex reserves cross $23b, again

Star Business Report

The country's foreign currency reserves crossed $23 billion yesterday for the second time in a month.

As of yesterday, the central bank's reserves stood at $23.05 billion, almost 20 percent higher than $19.23 billion in the same day previous year, according to Bangladesh Bank figures. 

The central bank attributed the record reserve accumulation to a stable flow of remittances and export earnings along with a satisfactory flow of foreign direct investment and foreign currency borrowing by the country's private sector.

The reserves first crossed the $23-billion mark on February 26 this year and are currently enough to meet the country's import bills for more than six months.

“With the current reserve, Bangladesh can weather any internal or external economic shock,” the central bank said.   

The country's import liabilities have fallen thanks to a decline in food imports resulting from near self-sufficiency in food production, as well as lower global prices of food and the slump in oil prices, the central bank said in a statement.

Currently Bangladesh is ranked second in South Asia in forex reserve, right behind India, which has a reserve of $339.99 billion.

Bangladesh added a staggering $20 billion to its reserves in the last 10 years.

A healthy reserve allows a country to get higher credit rating and helps its private sector to get loans from foreign sources at low interest rates.

The current reserves will help keep the Taka stable against the US dollar, the central bank said.

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