Staff Reporter :
The Bangladesh Bank (BB) anticipates that the foreign exchange market, particularly the dollar rate, will stabilise in the coming days, thanks to an increased inflow of foreign currency and active interbank transactions.
This was revealed by the central bank’s newly appointed spokesperson, Husne Ara Shikha, in a video message delivered in Dhaka on Tuesday.
Shikha stated that the price of the US dollar is currently fluctuating between Tk 118 and 120, with the difference between the official banking channel rate and the curb market rate now less than 1 percent.
“Interbank foreign exchange trading has been enabled, allowing banks to trade among themselves, and the exchange rates are market-based,” she explained.
GROWTH IN REMITTANCES BOOSTS RESERVES
The BB spokesperson also highlighted the significant growth in remittances, which is helping to stabilise foreign exchange reserves. “It is becoming possible to prevent the loss of foreign exchange reserves because remittances are increasing. Compared to the last fiscal year, there has been a 60 percent growth in this fiscal year,” Shikha stated.
According to data from the central bank, Bangladesh received $2.2 billion in remittances in August alone, marking a 39 percent year-on-year increase. During the first 14 days of September, the remittance inflow amounted to $1.17 billion, and typically, the country receives close to $2 billion in remittances every month. An increase in this amount would further positively impact the country’s currency reserves.
CURRENT STATE OF FOREIGN RESERVES
As of the latest reports, Bangladesh’s foreign exchange reserves stand at $24.3 billion. However, under the International Monetary Fund’s (IMF) BPM-6 calculation standard, which deducts short-term liabilities, the net reserves are estimated to be closer to $20 billion.
“Net reserves are calculated by subtracting short-term liabilities from the gross reserves, giving the actual reserve amount according to the IMF’s BPM-6 measure,” Shikha explained.
The central bank’s confidence in the stabilisation of the foreign exchange market comes amid efforts to balance the increasing demand for dollars with a consistent inflow of foreign currency, largely driven by the robust remittance growth seen in recent months.