In the midst of a dollar crisis, which is negatively impacting businesses in Bangladesh, the country’s foreign exchange reserves were reported at US $ 21.15 billion recently, in accordance with the IMF’s reserve calculation method.
The Bangladesh Bank released this information, as per reports.
According to the central bank, just one week earlier, on 21st September, the reserves had stood at US $ 21.45 billion. Within a matter of days, these reserves dwindled by US $ 300 million to US $ 21.15 billion.
Debapriya Bhattacharya, a prominent macroeconomist and public policy analyst, explained this decline was primarily due to delayed payments related to fuel imports and Western investors repatriating their profits abroad. This situation could potentially lead to the closure of some imports, particularly in the case of fuel.
Foreign investors are also feeling pressure to move their profits overseas due to political uncertainties.
Economist Ahsan H. Mansur, meanwhile, highlighted two contributing factors to the depleting reserves: a decrease in inward remittances and an increase in money laundering activities.
It’s expected that the economic situation may not significantly improve until after the next national election due to prevailing uncertainty. Mansur noted that the establishment of a stable government through a credible election could boost confidence and lead to a faster economic recovery.
The central bank reported that at the beginning of September, the country’s gross reserves, which include funds from the Economic Development Fund (EDF) and loans from reserves, amounted to US $ 29.23 billion even as by the start of 27th September, this figure had decreased to US $ 27.06 billion.