The country’s foreign exchange reserves soared past $16-billion mark on Tuesday after Bangladesh Bank brought another $576 million in last one month amid
slumping value of the dollar and dwindling import in poor business environment.
The reserves, which raced past $15 billion in May after the central bank had brought around $4 billion in the previous 11 months, reached $16.03 billion on Tuesday.
Central bank officials said till Sunday the BB brought $576 million in the new financial year 2013-2014 beginning from July 1 after it had brought around $4.70 billion in the FY 13 to contain the falling value of the dollar against the taka.
They said that the falling import payment, particularly that of capital machinery and industrial materials, also contributed to the swelling of the central bank reserves.
Besides, recent increase in export earning and hike in inward remittance ahead of Eid-ul-Fitr also contributed to the reserve, they said.
‘The central bank had to purchase huge amount of dollar from the local banks to keep the rate of the taka against dollar steady,’ said a BB official.
The rate of the taka has remained at around 77.5 against the dollar for the last few months after it came down to the range in May from around Tk 84 early 2012.
The officials said that import payment fell by around 9 per cent year-on-year in the first 11 months of the last FY 13 as capital machinery import fell by 3.09 per cent and industrial raw material import by 14.23 per cent during the period.
‘The ongoing political unrest has taken a toll on businesses affecting the imports of machinery and raw material. As a result the central bank’s reserve swelled,’ said another official.
BB governor Atiur Rahman, however, said that a slump in food imports thanks to high agricultural output, improvement in payment system and a double-digit export growth had all contributed to the reserve.
‘This is enough to foot the import bill for five and a half months,’ he told private news agency bdnews24.com.
The current reserve is six billion dollars more than of Pakistan’s, he said.
Former BB governor Saleh Uddin Ahmed told New Age that the big reserve was good for the country as it kept foreign exchange market stable for long term but falling import of industrial material and machinery was a concern.
Suitable business environment in the country should be created for proper utilisation of the reserve, he said.
-With New Age input
