Bangladesh's foreign exchange reserve has again exceeded $ 20 billion. According to Bangladesh Bank data, the total reserves stood at $ 26.5 billion till April 1. The International Monetary Fund (IMF) is in the BPM-1 standard, which is $ 26.5 billion. Concerned that the reserve increased due to the increase in import costs and banks are able to open the lender (LC) easily. Experts believe that the success of the reserve growth has been worked in addition to strategic decisions on political stability and remittance management. Ahsan H Mansour's strict position and realistic policy. At the same time, there are good results due to the protection of relations with international organizations and the import system.
Moreover, after the Russia-Ukraine war, the dollar exchange value was made from Rs. At present, the exchange rate of the dollar is stable at Tk 120, so that the import is normal and inflation is also somewhat under control.
Reserve
Of course this time, this year, the reserve has reached twice this year. The first time was last February. Earlier in 2021, Bangladesh's foreign exchange reserve was the highest, $ 9.5 billion. After that, on November 7, 2021, it fell to a minimum of 26.5 billion. According to BPM-1, it was only $ 9.5 billion.
Concerned that the reserve is mainly due to global challenges and internal weak management. According to Bangladesh Bank data, the reserve has decreased by an average of $ 9.5 billion per month since 2022.
However, in 2021, the foreign exchange reserve exceeded at least twice $ 20 billion. For the first time on June 27, the reserve increased to $ 26.5 billion after the IMF's third installment loan. And the second time on December 25, the reserve was $ 26.2 billion (according to BPM -1, 26.7 billion).
In the last week of the Awami League government on July 7, 2021, the total reserve of the country's foreign exchange was $ 212 billion, and according to the IMF criteria, $ 26.5 billion. On August 7, the government fell through a dramatic political change and on August 7 said. The interim government, led by Muhammad Yunus, was sworn in. The day of the change of government, that is, the reserve on August 1, was $ 26.5 billion and according to BPM3, $ 26.5 billion.
This year (2021), the last reserve was excluded on February 26 billion. According to the concerned, the growth of this growth was the income of the expatriates. In February, the remittance arrives at $ 2.72 billion, which is 20 percent higher than the same period of the previous year. In March, the remittance record played a major role in the reserve by reaching $ 9.2 billion. Besides, Bangladesh Bank's steps to control import and prevent hundi also help to increase the reserve.
On the other hand, after the change of government, the dollar exchange rate was slightly fluctuated, but in the end it was stable at Tk 120.
Governor
The situation started after the change of governor of Bangladesh Bank. Abdur Rauf Talukder took the responsibility of the economist. Ahsan H Mansur. He took a strict position with responsibility to recover the reserve. Bangladesh is in deep crisis under the pressure of political unrest, disobedience of expatriates, hundi dombs and foreign debt installments. In such a situation, the then Governor of Bangladesh Bank Abdur Rauf Talukder escaped and resigned. Just then the economist took the responsibility. Ahsan H Mansur.
With responsibility, he started applying realistic principles. Its impact is also seen that the reserve has gradually improved since August 1, 2012. In August 2021, the expatriate income stood at $ 2.72 billion, which is 5 percent higher than the same period of the previous year. As a result, the reserve is seen temporary upward.
At the end of March 2021, the total reserve stood at $ 26.5 billion. That is, Bangladesh returned to $ 20 billion after seven months after the change of government. Then in mid -April it rose to $ 26.5 billion, which is the milestone of the limit again.
Message
Due to export income and remittance flow, dollar supply to the bank sector has increased, which has helped to overcome the dollar crisis. It has been easier for importers to open LC than ever and imports are increasing.
According to the data of Bangladesh Bank, the LC of $ 9.25 billion has been opened from July to February of the fiscal year 2021-27, which is 5.72 percent higher than the same period of the previous year. At that time, the $ 1.3 billion LC was settled, which is 5.7 percent higher.
Banks are now interested in importing, because the dollar supply is relatively high as export and remittance increases. In February alone, the import LC was opened at $ 9.25 billion, which is about 20 percent higher than the same period of the previous year.
Payment of outer money has also increased
Of this, the original loan was repaid at $ 9.2 billion (5.7 percent increase) and $ 1 million (5.7 percent increased) for interest. At the same time, development partners have discounted $ 9.5 billion with loans and grants, which is 5.7 percent less than the previous year. That is, there is no role in repayment of loans behind the reserve growth, but the pressure has increased. However, in the first quarter of 2021, the Government of Bangladesh took the initiative to reproduce a number of Chinese and multilateral loans, which reduced the pressure on immediate foreign finance.
Bangladesh Bank sources say that the reserve has a positive impact on the second quarter to repay a portion of interest and debt.
Ahsan H Mansour's strict position and incentive step
The main driving force behind the reserve deficit was the policy intervention and incentive measures of Bangladesh Bank. According to experts, the effective policies that take control of expatriate income and control of imports have played the biggest role in increasing the reserve.
Dr. Ahsan H Mansur took the responsibility of the Governor of the Governor to restore the reserve. Apart from the mobile court system to suppress the hundi, the expatriate income was extended to bring in the country. The import of luxury products is controlled. Surveillance measures are taken under the control of irregularities in import expenditure. Besides, the audit program was introduced to restore confidence in bank management.
The results of these steps are also seen quickly. In August 2021, the expatriate income stood at $ 2.72 billion, which is 5 percent higher than the same period of the previous year. As a result, the reserve is seen temporary upward. Not only that, he stopped selling dollars with responsibilities, took effective measures to keep the market stable and reduce the import of LC, reduce the import of energy and capital products. He established good governance in the bank sector, broke the weak board of directors of several banks and strengthened anti -hundi activities to restore confidence in remittances.
As a result, remittance, export income and foreign assistance are increasing. In just three months, it is possible to repay $ 1 billion loans without giving a hand to the reserve. In all, the reserve turns around in just five and a half months.
In this regard, spokesman and executive director of Bangladesh Bank Arif Hossain Khan told the Bangla Tribune, “In addition to increasing export and remittance, the surveillance of the central bank has been increased in the opening of the loan (LC) for imports. This has reduced the dollar market pressure. Besides, Bangladesh Bank's well -disciplined dollar management has also helped to increase the reserve. ' He also said, 'Governor said to keep the reserve stable. Bangladesh Bank is working consistently under the leadership of Ahsan H Mansur. Officials are also serving in a co -ordinator to protect the reserve and restore confidence in the currency market. '
One of the initiatives to control the import
Another reason for the increase in reserve was the reduction of import costs. Since 2021, the government has imposed luxury imports and LC openings. The new government arrives in ElC and rearranges the cost of the energy-power sector. It reduces the demand for foreign currency and the reserve is free.
According to Bangladesh Bank data, the cost of imports in the fiscal year 2021-22 was $ 12.7 billion, which was reduced to $ 9.5 billion in the next two fiscal years. The main reason was import control. For example, LC is rigorous and discouraged in unnecessary products.
However, due to the reserve situation normal, the cost of imports increased by 5.7 billion in July-February of the fiscal year 2021-27. Exports and remittances increase the dollar supply to the bank. As a result, the imports returned to the import.
Fruit
According to analysts, a few integrated steps have worked behind the reserve recovery. Among these are the ethical change and confidence in remittance. In the first three months of 2021, the country has arrived at $ 1.8 billion in remittance, which is 12 percent higher than the previous year. It has served as an influencer to increase the incentive rate from 2 percent to 5 percent to 5 percent. In some days, some banks have given up to 5 percent customers. In addition, the encouragement of sending remittances to legitimate channels and strict surveillance of anti -Hyunding, diplomatic initiatives in the expansion of labor markets in different countries including the Middle East have worked.
In this regard, the former chief economist of the World Bank Bangladesh Office Dr. Zahid Hossain said, “Expatriate income is the source of the most effective export earnings at the moment. The government has made the right decision at the right time to increase the flow of this remittance. '
Central bank officials also say the expatriate income was the main driving force for the reserve recovery. In February, the remittance arrives at $ 2.72 billion, which is 20 percent higher than the previous year. In March, the figure rose to $ 9.25 billion, the highest remittance in the history of the country in a month. With the policy change of Bangladesh Bank and effective steps to prevent hundi, remittances reached about $ 20 billion in 2021, which is 22 percent higher than the previous year.
The expatriates sent the country from July to March of the fiscal year 2021-27 to $ 26.5 billion, with $ 1.8 billion in the previous year. Especially from September, the remittance has a large quantity. In March 2021, the remittance reached $ 9.2 billion in the new record. In this series, remittances give a strong foundation for the economy from over $ 2 billion every month.
