Gross forex reserves dip below $21b

The country's gross foreign currency reserves have dipped below the $21 billion mark, causing concern for the dollar-strapped economy.

According to the Bangladesh Bank (BB) latest data, the country's forex reserves stood at $20.96 billion on 18 October 2023, as per the International Monetary Fund's (IMF) Balance of Payments Manual 6 (BPM6).

The central bank, however, calculates the reserves differently, as it puts the gross reserves figure at $26.85 billion.

Top bankers blamed the decline in forex reserves on the BB's continuous sale of US dollars to commercial banks.

Speaking on condition of anonymity, a central bank official said the downward trend in reserves was due to the BB's record sale of US dollars from its reserves to help banks meet their overseas payment obligations amid the forex crunch.

According to BB statistics, the central bank sold a record $13.57 billion to commercial banks in FY2023 to help them meet their overseas transactions.

The upward trend in dollar sales has also continued in FY2024, with the BB selling $1.14 billion in July, $1.15 billion in August and $0.97 billion in September, show data.

jubairfe1980@gmail.com