Country's foreign exchange (forex) reserves crossed the US$30- billion mark Monday principally as the global market slump lowered import-payment pressures on the economy.
The forex reserves rose to $30.001billion on the day, setting a new record, from $29.86 billion of the previous working day, officials said. It was $29.01 billion on April 25.
"Our forex reserve has crossed the $30-billion mark mainly due to higher export earnings and upward trend in inward remittance," SK Sur Chowdhury, deputy governor of Bangladesh Bank (BB), told the FE.
Mr. Sur Chowdhury also said the country would be able to settle eight months import bills with the current reserves.
The country's overall import turnover decreased in terms of value, not volume, following lower prices of commodities, particularly petroleum products, on the global market, the deputy governor explained.
"The country's overall imports are still at a satisfactory level," he noted.
He also said stable exchange of the local currency against the US dollar encouraged the expatriate Bangladeshis to send home their hard-earned money that also helps boost the country's forex reserves.
Bangladesh received $1.13 billion as remittances between June 01 and June 24 from Bangladeshi nationals working abroad, according to the central bank's latest statistics.
In May 2016, the inflow of remittances amounted to $1.21 billion.
The BB officials also expressed the hope that the remittances might exceed $ 1.40 billion by the end of this month if the existing trend in inward remittances continued.
Besides, the purchase of the US dollar from the commercial banks has contributed to the increase in the forex reserves recently, according to another central bank official.
The central bank has already intensified purchase of the dollar from banks aiming to keep the inter-bank foreign-exchange market stable ahead of the Eid-ul-Fitr festival.
As part of the move, the BB bought US$90 million from eight commercial banks Monday directly to protect the interests of exporters and migrant workers by keeping stable the exchange rate of local currency against the greenback.
On Thursday, the central bank similarly purchased $25 million from banks on the same ground.
A total of $3.88 billion was bought from the commercial banks between July 2 and June 27 of the ongoing fiscal year (FY) 2015-16 for offsetting its increased supply to the market, the BB data showed.
"We may continue buying of the US dollar from the banks in line with the market requirement," the BB official hinted.
