Reserves fell by 130 crore dollars in one month
Expatriates sent the lowest remittances in recent July in the last 10 months which has an impact on the country's foreign exchange reserves. According to the data published by Bangladesh Bank on Thursday (August 1), the foreign exchange reserves decreased by 1.3 billion or 130 crore dollars to 20.49 billion dollars in a month which was 21.79 billion dollars at the end of June last month. And net reserves fell to 15.47 billion dollars.
Earlier, Bangladesh Bank released weekly reserve data but July data was released after June.
According to the data of the central bank, remittances came in at 190 crore dollars last July. In the previous month of June, its amount was 254 crore dollars. This means remittances fell by 640 crore compared to the previous month, which is about 34 percent lower. And in the same month of the previous year, remittances came in at 197 crore dollars. As such, it decreased by 7 crore dollars or 3.55 percent.
It is known that the export income has decreased by 5.90 percent till last May. In such a situation, foreign exchange reserves have come down again.
Last June, Bangladesh received a loan of 2.05 billion dollars from various sources including the IMF. By this, according to BPM6, the net reserve stood at 16.77 billion dollars at the end of June. A 1.42 billion settlement was made to the Asian Clearing Union (ACU) in early July.
Meanwhile, imports of luxury goods have been discouraged to reduce pressure on the dollar. Banks were also asked to be cautious in importing goods other than essential goods. But even then, Bangladesh Bank sold 1,269 crores or 12.69 billion dollars from foreign currency reserves in the outgoing financial year to meet the dollar crisis. As a result usable reserves have decreased.
For the first time in the country's history, foreign exchange reserves crossed the 48 billion dollar mark in August 2021. However, increased demand in the post-corona economy and the Russia-Ukraine war have led to dollar sales from reserves, reduced foreign debt and investment, and increased repayment of previous liabilities. The central bank sold 33.89 billion in the last 3 fiscal years. All in all, reserves are decreasing linearly.