Foreign Exchange reserves cross $42 billion for the first time

Foreign exchange reserves today hit a new record of $42.09 billion thanks to the upward trend of remittance against lower import payments.

The reserve, one of the major macroeconomic indicators of an economy, touched the benchmark of $41 billion on October 28 and $40 billion on October 8, according to data from Bangladesh Bank.

The reserve stood at $32.11 billion on December 15 last year.

Both the collapse in demand and investment have had an adverse impact on import payments in recent months at a time when remittance has been on the rise, due to stagnation in 'hundi' -- an illegal cross-border financial transaction -- amid the coronavirus pandemic.

Between July and November, remittances hit $10.90 billion, up 41.32 percent year-on-year.

Imports decreased 12.99 percent year-on-year to $15.78 billion in the first four months of this fiscal year, when exports grew 1.1 percent to $12.54 billion.

The three indicators have together helped grow remittances in a consistent manner since the start of the coronavirus pandemic.