Forex reserve crosses record $25b mark

The country's foreign exchange (forex) reserve crossed the US$25 billion mark for the first time Thursday following steady growth of both export earnings and flow of inward remittances.
The reserve rose to $25.02 billion on the day, setting a new record, from $24.77 billion of the previous working day. It was $24.09 billion on April 29 last.
"Our forex reserve has crossed the $25 billion due mainly to steady growth of both export earnings and inward remittances," Deputy Governor of the Bangladesh Bank (BB) SK Sur Chowdhury told the FE.
Mr. Chowdhury, also assigned to look after forex reserve and treasury management, said the country will be able to 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 helped raise the country's forex reserve, the deputy governor explained.
The senior central banker said considering the forex reserve position, Bangladesh now stands second in South Asia after India whose foreign currency reserve is $354.39 billion followed by Pakistan's $17.29 billion.  
"Stable exchange of the local currency against the US dollar has encouraged the expatriate Bangladeshis to send their hard-earned money home that also helps boost the forex reserve," he noted.
Bangladesh received $ 968.64 million as remittances between June 01 and June 19 from Bangladeshi nationals who are working abroad, according to the central bank's latest statistics, released Thursday.
The BB officials expect the inflow of remittances to touch nearly $1.40 billion by the end of this month ahead of the Eid-ul Fitr, the biggest religious festival for the Muslims.
Talking to the FE, Kazi Sayedur Rahman, general manager of the Forex Reserve and Treasury Management Department of the BB, said the higher foreign exchange reserve will help encourage investors, particularly foreign ones, to invest in the country.
"It will also help improve the country's rating position in the near future," Mr. Rahman explained.
Besides, purchase of the US dollars from the commercial banks has contributed to increasing the forex reserve recently.
"We're purchasing the greenback from the banks continuously to help keep the inter-bank forex market stable," another BB official said.
As part of the move, the central bank bought $84 million from seven commercial banks at market rate Thursday. The BB official also said the central bank may continue such intervention in line with the market requirement.
A total of $3.72 billion was bought from the commercial banks between July 02 and June 25 of the FY 15 as part of the BB's intervention in the market.
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