Increased purchase price of oil, LNG putting negative impact on forex reserves: Momen

Foreign Minister AK Abdul Momen today told parliament that the increased purchase price of oil and LNG is putting a negative impact on foreign exchange reserves.

The foreign minister said the price of Brent crude oil in the world market was USD 56 per barrel in January, which has now risen to more than USD 120. The price of LNG has also gone up in the spot market.

Replying to a question of Gonoforum MP Mokabbir Khan, the foreign minister said, "The amount of government subsidy is being increased so that people are not affected due to increase in fuel and LPG prices which is increasing pressure on the overall budget."

"In addition, the purchase of oil and LNG at an increased price is putting a negative impact on foreign exchange reserves," he said in a scripted answer.

The minister also said the Russia-Ukraine war has affected all the countries of the world and Bangladesh is no exception in this regard.

"The negative impact of this war on the global economy is multidimensional, this war also has a multidimensional effect on Bangladesh," he added.

The foreign minister said the government was very much able to mitigate the damaging effects of the Russia-Ukraine war.