Forex reserves fall

Foreign exchange reserves slipped in May for the first time since December, Bangladesh Bank (BB) said on Sunday, reports Reuters.

Reserves at the end of May eased to $20.23 billion from a record high of $20.37 billion the previous month, but were up from $14.53 billion a year earlier. The reserves are enough to cover six months of imports.

Rising exports, strong remittances from Non-resident Bangladeshis (NRBs) working overseas and slower imports have helped build the reserves, a senior central bank official said.

The marginal drop in May was due to a rise in imports as political unrest subdued after a January election that was boycotted by main opposition party.

The country's exports in July-April, the first 10 months of the current fiscal year, increased 13 per cent to $24.65 billion over the same period in the previous year on the back of clothing sales.

However, the country's garment industry has been hit by a string of fatal factory disasters that killed more than 1,130 people.

Imports rose 17 per cent to $29.77 billion in July-March on year-on-year after a more than 4.0 per cent drop in the 2012-13 fiscal year that ended in June 2013.

Remittances from NRBs fell nearly 4.8 per cent to $11.73 billion in July-April from the year-ago period, although inflows rose 3.0 per cent in April, the third straight month of gains.