Gross forex reserves exceed $34 billion

Bangladesh's gross foreign exchange reserves crossed the $34 billion-mark on Monday following a higher inflow of remittances ahead of the upcoming national elections and the holy Ramadan.
Reserves rose to $34.06 billion on the day from $33.24 billion on February 2, according to the Bangladesh Bank's traditional calculations.
But as per the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual (sixth edition), generally known as BPM6, forex reserves stood at $29.47 billion during the period under review from $28.75 billion.
The flow of inward remittances grew by nearly 54 per cent to $1.03 billion during February 1-8 this year, up from $671 million in the same period last year, according to the central bank's latest statistics.
The banking regulator purchased $209 million more through auction from 19 banks in the interbank spot market on the day, aiming to offset the higher inflow of remittances in the market, according to officials.
The amount was bought under the Multiple Price Auction method, and the cut-off rate was Tk 122.30 per dollar, they said.
The ongoing intervention was also contributing to a gradual strengthening of the country's foreign exchange reserves, they explained.
"We are purchasing US dollars from banks directly to absorb the higher inflow of remittances ahead of the upcoming national polls and the holy Ramadan," a senior Bangladesh Bank official told The Financial Express.
He also said such interventions helped keep the exchange rate of the US dollar against the local currency stable, which in turn encouraged both exporters and remitters.
The central bank's latest data shows it has so far bought $4.73 billion from banks directly since July 13 last year under the prevailing free-floating exchange rate arrangement.

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