Forex reserves top $37b on fresh aid

The gross foreign-exchange reserves surpassed the US$37-billion mark on Monday after the country received nearly US$700 million in fresh external financing from development partners, including the World Bank.

Officials were expecting the reserve position to strengthen further in the coming days.

The country's gross forex reserves rose to US$37.05 billion from US$36.31 billion the previous day following the latest disbursements, officials said.

Under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), the country's reserves increased to US$32.48 billion from US$31.74 billion, according to the latest Bangladesh Bank data.

A senior Bangladesh Bank (BB) official told The Financial Express that the country had received US$667.65 million from the International Development Association (IDA) and an additional US$10.60 million from the Japan International Cooperation Agency (JICA).

The IDA, a member of the World Bank Group, provides grants and concessional loans to low-income countries.

JICA, meanwhile, is the Japanese government agency responsible for administering most of Japan's Official Development Assistance (ODA).

"We've also received US$19.04 million in remittances from the United Nations (UN) mission," the central banker said without elaborating.

A top central banker indicated that the country's gross forex reserves could reach around US$37.50 billion by the end of June if additional external funds are received as expected.

He also said more foreign funds are likely to be added to the country's reserves shortly.

Central bank officials said stronger remittance inflows, lower import payment obligations and recent dollar purchases by the Bangladesh Bank had also contributed to the improvement in the country's reserve position.

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