The country’s foreign exchange reserves have increased, largely supported by remittances from expatriates. Currently, the reserves have risen to nearly 21 billion dollars (20.85 billion).
This information was revealed in an updated report published by Bangladesh Bank on Sunday (February 23).
According to the central bank’s data, as of February 20, the country’s reserves, based on the International Monetary Fund’s (IMF) BPM-6 accounting method, stand at 20.85 billion dollars or 2,085 crore dollars. Meanwhile, according to Bangladesh Bank’s calculation, the country’s gross reserves have reached 26.11 billion dollars or 2,611 crore dollars.
Additionally, in the first 22 days of February, remittances amounted to 193 crore dollars or 1.93 billion dollars, equivalent to 23,546 crore Bangladeshi Taka. This means that remittances in February will exceed two billion dollars.
Net reserves are calculated based on the IMF’s BPM-6 measurement. By subtracting short-term liabilities from total reserves, the net or actual reserves figure is determined.
In addition to this, Bangladesh Bank has another reserve calculation, known as the usable reserves. This data is not officially disclosed by the central bank and is only shared with the IMF. For this calculation, usable reserves are determined by excluding dollars held in the IMF’s SDR account, foreign currency in banks’ foreign currency clearing accounts, currency held in the ACU (Asian Clearing Union) bills. According to this calculation, the country’s usable actual reserves are slightly above 15 billion dollars.
Generally, a country should maintain reserves equivalent to at least three months of import costs. In this regard, Bangladesh is in a comfortable position, as the country’s reserves are enough to cover more than three months of import obligations. Net reserves are calculated based on the IMF’s BPM-6 measurement, and by subtracting short-term liabilities from total reserves, the net or actual reserves figure is determined.
LND
