‘BD net forex reserves below $18 billion’

Staff Reporter :
The net foreign currency reserves of Bangladesh currently remain below $18 billion taking into account the central bank’s liabilities, said Zahid Hussain, a former lead economist of the World Bank’s Dhaka office, on Wednesday.

Speaking to reporters, Zahid Hussain revealed this information after the conclusion of the in annual conference of International Business Forum of Bangladesh (IBFB), at Gulshan Club in Dhaka.

He expressed the concern that although the reserve situation had not reached an alarming level, it has become a matter of concern due to Bangladesh Bank’s monthly sales of more than $1.0 billion worth of US currencies.

The economist cautioned that if the use of the forex reserve continues at the current rate, the country will run out of international currencies soon.

However, according to the Bangladesh Bank’s data, Bangladesh’s foreign exchange reserves stood at $21.15 billion on Tuesday in line with the IMF reserve calculation method.

Meanwhile, Bangladesh’s forex reserves plummeted from over $34 billion in May 2022 to less than $25 billion this June, dipping further below in October.

Zahid Hussain also expressed dissatisfaction over the existing Gini coefficient, a measure of income inequality.

Economic growth will not come as a blessing if the Gini coefficient is not reduced.

The former World Bank lead economist reported 90 percent of the population made less than $10, bottom 50 percent less than $4 and the top 1 per cent nearly $110 a day in 2022.

“If 8 per cent average growth is not ensured, there is no possibility of becoming a middle-income country,” Hussain added.

Indian High Commissioner to Bangladesh Pranay K Verma was present at he event as chief guest at the conference, which was chaired by IBFB President Humayun Rashid.