Forex reserve crosses $22b

FE Report | Published: August 08, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The country's foreign exchange (forex) reserve crossed US$22 billion-mark for the first time Thursday, thanks to a robust growth of export earnings.
The reserve rose to $22.05 billion on the day, setting a new record, from $21.72 billion of the previous working day. It was $21.03 billion on June 16 last.
"The forex reserve has crossed $22 billion-mark due mainly to higher growth of export earnings, rising inflow of both inward remittances and foreign direct investment (FDI)," Bangladesh Bank (BB) governor Dr. Atiur Rahman told the FE.
The country's overall export earnings grew by 11.56 per cent to $30.18 billion in the fiscal year (FY) 2013-14 from $27.03 billion in the previous fiscal despite political turmoil in the first-half of the year centring last parliament elections held in January 5 last.
The increased allocation for the export development fund (EDF) has contributed to achieve such export earnings growth, the BB governor explained.
The BB has already enhanced the allocation of EDF by 25 per cent to $1.5 billion from $1.2 billion earlier to meet the growing demand of the country's exporters.
"We may increase the allocation of EDF further, if necessary," Dr. Atiur Rahman noted.
Both foreign and local investors are confident as the country's financial sector remains stable, according to the BB governor.
He also said the central bank is working continuously to establish good governance in the country's banking sector through strengthening monitoring and supervision.
"Higher forex reserve will help improve the country's rating and encourage investors, particularly foreign ones to invest in Bangladesh," the central bank chief observed.
He also said the country will be able to settle more than seven months' import bills with the existing forex reserve.
Talking to the FE, a senior BB senior said that buying US dollar from the commercial banks directly has also contributed to increasing the forex reserve in recent months.
The BB is purchasing the US currency from the banks to protect the interests of exporters and migrant workers by keeping the exchange rate of the local currency against the greenback stable.
A total of $776 million was bought from the commercial banks between July 2 and August 7 of the current fiscal year (FY) 2014-15 as part of the BB's intervention in the market, the central banker added.
He also said considering the forex reserve position, Bangladesh now stands second in South Asia after India whose foreign currency reserve is $320 billion followed by Pakistan's $14 billion.