Forex reserve shoots over $24b mark

Country's foreign exchange (forex) reserves overshoot US$24-billion mark following steady growth of both export earnings and inward remittances.

The reserves rose to $24.09 billion Wednesday, setting a new record, from $23.78 billion of the previous working day.

It has incrementally risen from $23.05 billion of March 31 last.

"The forex reserve has crossed the $24-billion mark due mainly to steady growth of both export earnings and inward remittances," said Kazi Sayedur Rahman, general manager of the Forex Reserve and Treasury Management Department of Bangladesh Bank (BB).

He told the FE that the country will be able to settle nearly seven months' import bills with the dollars in its coffers. Rock-bottom prices of petroleum products on the international market have also helped in increasing the country's forex reserves, the central banker explained.

Besides, purchase of the US dollar from the commercial banks has contributed to fuelling the forex growth in recent times, according to another BB official.

The central bank has bought the greenback from the banks continuously to help keep the inter-bank foreign-exchange market stable.

As part of the move, the BB bought $30 million from a commercial bank at market rate Wednesday.

A total of $2.82 billion was bought from the commercial banks between July 2 and April 29 of the current fiscal year (FY) 2014-15 as part of the money-market intervention.

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