Forex reserve crosses $43b

The country's foreign exchange reserves yesterday hit a new record of $43.17 billion thanks to the upward trend of remittance and lower import payments, Bangladesh Bank data showed.

The reserves, one of the major macroeconomic indicators of an economy, touched the $41 billion mark on October 28 and rose to $42 billion on December 15.

The reserves stood at $32.68 billion in December last year. This means Bangladesh's foreign exchange has increased more than $2.1 billion this month. 

Between July and November, remittance earnings rose to $10.90 billion, up 41.32 per cent year-on-year. The rally of remittances has also kept its pace this month, making a large contribution to the foreign exchange reserve.

Remittance stood at $1.91 billion in the first 29 days of December in contrast to $1.59 billion in the same period a year ago.

"This is surely a very good news for Bangladesh before the start of a new year," Finance Minister AHM Mustafa Kamal said in a statement released by his ministry yesterday.

This is another milestone, which portrays the economic stability of Bangladesh, he said.

Remittance has played a vital role in boosting the foreign exchange reserves amid the ongoing coronavirus pandemic, the minister said.

"I would like to express my gratitude towards the expatriates, who worked hard and helped the government achieve the milestone under the strong leadership of Prime Minister Sheikh Hasina.

Remittance has been on the rise riding on the stagnation of the global 'hundi' cartel, an illegal cross-border financial transaction.

The hundi cartel has been rendered ineffective across the globe due to the restrictions on movement imposed by countries to limit the spread of the coronavirus.

But the decrease in imports has also helped to push the reserve in recent periods.

Imports declined by 8.84 per cent to $20.24 billion at a time when exports grew by 0.86 per cent to $15.52 billion.

The three indicators -- remittance, imports and exports -- have elevated the reserves to record highs following the outbreak.