Staff Reporter :
Bangladesh’s foreign exchange reserves are projected to reach $30 billion next month, Bangladesh Bank Governor Dr Ahsan H Mansur announced on Wednesday.
Speaking at a research dissemination event organised by the Policy Research Institute (PRI), supported by the International Growth Centre (IGC) and conducted in collaboration with the central bank, Dr Mansur emphasised the importance of rebuilding the country’s forex reserves and strengthening the banking sector’s performance.
While highlighting the long-term target of increasing foreign exchange reserves to $40 billion, he acknowledged that achieving this goal will require time.
Earlier, on 14 May, the Governor noted that Bangladesh is expected to receive loans totalling $3.5 billion next month from various international lenders, which will provide a significant boost to the economy.
According to figures released by Bangladesh Bank on 19 May, the country’s gross foreign exchange reserves currently stand at $25.44 billion. However, when measured under the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual, sixth edition (BPM6), the reserves are considerably lower-reported at $20.07 billion-equivalent to approximately 3 to 3.5 months of import coverage.
Bangladesh previously enjoyed a robust reserve position, reaching a record high of over $48 billion in August 2021, buoyed by strong remittance inflows and reduced import bills during the COVID-19 pandemic.
However, this favourable trend has since reversed, impacted by factors including money laundering under the Hasina administration, rising global commodity prices, increased import expenditure, and a decline in both remittances and export earnings.
