Foreign exchange (forex) reserve crossed $42-billion mark for the first time in the history of Bangladesh on Tuesday.
Officials ascribed this record reserve to lower import payment obligations and higher growth of inward remittance.
Forex reserve rose to $42.09 billion on the day, setting a new record from Monday's $41.87 billion, according to the central bank's latest data.
It was $41.02 billion on October 29 this year.
"Our forex reserve crossed the $42-billion mark ahead of 49th Victory Day mainly due to lower import payment pressure on the economy and higher remittance inflows in recent months," Bangladesh Bank deputy governor Kazi Sayedur Rahman told the FE.
The country's overall import payments dropped by nearly 13 per cent to $15.78 billion during the July-October period of the current fiscal year (FY), 2020-21.
It was $18.14 billion during the same period of last fiscal mainly due to the ongoing Covid-19 pandemic.
On the other hand, inward remittance grew by more than 41 per cent to $10.90 billion during the July-November period of FY 2021.
The amount was $7.72 billion in the corresponding period of the previous fiscal.
Talking to the FE, another central banker said the continued purchase of US dollar directly from commercial banks has contributed to achieving the new reserve record.
An estimated $5.0 billion has so far been bought from commercial banks in FY 2021 as part of the central bank's intervention into the market, he added.
The official also said foreign loans and assistances have also helped push up forex reserve.
"The higher forex reserve will help the country in satisfactory rating as well as strong position on negotiations of overseas loans to help implement different mega projects," said a senior executive of a public bank in reply to a query.
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