Forex crosses $25b again

The country's foreign exchange (forex) reserve crossed the US$25 billion-mark again Tuesday following higher inflow of remittances ahead of the Eid festival and steady growth of export earnings.
The reserve rose to $25.03 billion on the day from $24.76 billion of the previous working day. It was $25.02 billion on June 25 last.
"The country's forex reserve has crossed the $25 billion again due mainly to higher flow of inward remittances and strengthening repatriation of export proceeds ahead of Eid-ul-Fitr festival," Kazi Sayedur Rahman, general manager of the Forex Reserve and Treasury Management Department of the Bangladesh Bank (BB), told the FE.
Bangladesh received $ 599.59 million as remittances between July 01 and July 10 from Bangladeshi nationals who are working abroad, according to the central bank's latest statistics.
The BB official also said now the country can settle more than seven months' import bills with the existing forex reserve.
Lower prices of petroleum products in the global market and private sector credit from overseas sources have also helped the country to have such a comfortable forex reserve, the central banker explained.
Talking to the FE, another BB official said purchasing of the US dollar from the commercial banks has also contributed to increasing the forex reserve recently.
"We're purchasing the greenback from the banks continuously to help keep the inter-bank foreign exchange market stable," another BB official said.
As part of the move, the BB bought $120 million from 14 commercial banks Tuesday to help the banks for complying with the net open position (NOP) rules for holding foreign exchange properly.
"We may continue purchasing the US dollar from the banks in line with the market requirement," the central banker hinted.
A total of $560 million was bought from the commercial banks between July 02 and July 14 of the current fiscal year (FY) 2015-16 as part of the BB's intervention in the market.
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