Finance
According to the most recent central bank data, Bangladesh’s foreign exchange reserves fell to $31.14 billion at the end of March, the lowest level since December 2016.
According to data from the Bangladesh Bank (BB), the country’s foreign exchange reserves were $31,142.72 million in March, down from $32,333.71 million in February, according to Xinhua.
This is the lowest level of forex reserves held by Bangladesh since December 2016, when the country’s foreign exchange reserves surpassed the $32 billion mark for the first time, according to an official from the bank’s Forex Reserve and Treasury Management Department who spoke on the condition of anonymity.
According to the official, reserves have dropped to a six-year low due to rising import costs caused by the Ukraine crisis, which has thrown commodity markets worldwide for a loop.
For a developing economy like Bangladesh, forex reserves equivalent to six months’ import bills are deemed adequate.
However, central bank officials stated that Bangladesh has enough reserves to cover five months’ worth of imports.
In August 2021, Bangladesh’s foreign exchange reserves reached an all-time high of $48 billion.
Since last year, the Bangladeshi government has taken a variety of measures, including relaxed rules, to entice more remittances from millions of Bangladeshis living and working abroad.
Source:IANS
