In the first 20 days of September, Bangladesh’s foreign exchange reserve experienced a large loss of $1.62 billion. The most recent development brings the reserve’s total to $21.45 billion.
According to a recent report released by Bangladesh Bank on Thursday, the amount was $23.06 billion on August 31.
The fall has been linked to a number of important economic reasons, including a decrease in remittance inflow, the settlement of import bills, and the removal of US dollars from the reserve.
According to central bank officials, up until August, inward remittances had decreased significantly over the previous two months by 13.5%. In addition, the authorities paid the Asian Clearing Union (ACU) $1.31 billion to cover their import commitments for the months of July and August.
Additionally, the central bank is selling off US dollars on the open market, significantly depleting the foreign exchange reserve.
In January of this year, the International Monetary Fund (IMF) accepted a loan application for $4.7 billion. To increase transparency and reporting standards, the global lender placed a requirement on the approval that the Bangladesh Bank disseminate reserve statistics using the BPM-6 technique.
Additionally, it stipulated that certain previously allotted funds including the export development fund (EDF) be excluded from the reserve.
In accordance with the requirement, the central bank is now publishing the reserve statistics.