Bangladesh's forex reserves grow by $180 mn in a week: Reports

Media reports miantained this citing figures from the Bangladesh Bank.

A week earlier, on May 15, reserves were recorded at $18.43 billion, based on calculations using the International Monetary Fund's Balance of Payments Manual 6 (BPM6).

The Bangladesh Bank adopted this new calculation method in July of the previous year, following recommendations from the IMF, which had approved a $4.7 billion loan in January. Despite the recent increase, current reserves are significantly lower than the $41 billion reported in August 2021.

This decline is attributed to the fact that import payments have been rising at a faster rate than remittance earnings and exports, leading to the present level of reserves.

Earlier on May 11, Bangladesh's foreign currency holdings fell below the $19 billion mark for the first time in 11 months.

According to BPM6, gross foreign reserves comprise several components: gold, cash US dollars, bonds and treasury bills, reserve positions in the IMF, and special drawing rights holdings.

The central bank's shift to the BPM6 methodology aligns with international standards and provides a more comprehensive view of the country's reserve assets. This method includes a broader range of financial instruments and positions, offering a clearer picture of the economic health and liquidity status of Bangladesh.

Fibre2Fashion News Desk (DR)