The reserve fell to 19 billion

The reserve fell to 19 billion
The reserve fell to 19 billion

Bangladesh Bank has paid 117 million 30 million dollars to Asian Clearing Union (ACU) for September-October. And in this, the real reserve of foreign currency has dropped another round to the house of 19 billion dollars. A related source informed this information.

Bankers said that the supply of foreign currency is not increasing according to the demand. Every month there is a shortage. And because of this every month the foreign exchange reserve is decreasing by more than 1 billion dollars. Bankers cited falling remittance flows, along with falling export earnings, as one of the reasons for the decline in dollar inflows. A record number of Bangladeshi workers are going abroad, but remittances are not coming at the desired rate. On the other hand, remittance inflows fell to a record amount last September. Bangladesh Bank’s latest figures show that remittances in September last year were $1.34 billion, the lowest in the last 41 months. As a percentage, remittances decreased by a quarter of 13 percent last September compared to September of the previous year. Whereas in the same period in the previous year, it was 154 million dollars. But the overall import burden is not decreasing. Especially past due LC and current LC liabilities have to be settled at higher rate than interflow. As a result, the foreign exchange reserves are decreasing every month.

Sources related to Bangladesh Bank said that the Central Bank has relaxed the policy in remittance collection to increase the inter-flow of foreign currency. Along with this, the banks have also been given a discount on the value of the dollar for collecting remittances at a higher rate. Bangladesh Foreign Exchange Dealers Association (BAFEDA) and Association of Bankers Bangladesh (ABB), the apex organization of bankers, had already taken this decision in a joint meeting with the senior authorities of Bangladesh Bank on October 30. It has been said that the banks which have dollar shortage can collect remittances at higher prices if they wish. However, this facility will be available till next December. At this time, this facility is said to overcome the dollar crisis.

It is known that every two months the liability of the Asian Clearing Union has to be paid. 1.3 billion dollars have to be paid in the last month of July and August. And in September and October, Akura’s debt was paid 1.17 billion dollars.

Related sources of Bangladesh Bank said that the amount of dollars that the banks are collecting is more than the number of LCs opened by many banks. As a result, every month they are facing deficit in paying the import liability. But as they cannot buy dollars from the market, Bangladesh is resorting to banks. However, the central bank is only providing some dollars to the banks for the essential purchases of the government, especially the essential purchases of BPC’s fuel oil, BCIC’s fertilizers, BADC’s consumables. After this, about 14 billion dollars had to be sold from foreign exchange reserves in the outgoing financial year. Which is the highest ever. But in the previous fiscal year, about seven and a half billion dollars had to be sold from the reserve.

Sources also said that if the rate at which the reserves are decreasing every month continues, the foreign exchange reserves will come under more pressure. Then it will be difficult to meet the emergency liability. There is no alternative to create a new labor market in the world to overcome this situation. Meanwhile, dollar prices are rising every month as the supply of dollars does not match the demand. At the same time, the amount of reserves is decreasing. In such a situation, banks are given the opportunity to bring remittance at a higher price. It is said that the banks will be able to give two and a half percent incentive on remittances from their own funds. Where the state is giving two and a half percent. Incentives of up to 5 percent are allowed on the existing value of remittances. Last month the dollar value of remittance was Rs.110. With this, 5 percent is 5 and a half rupees. Adding 5 and a half taka to 110 taka makes 116 taka 50 paisa.

In this regard, the source of the joint meeting of Bafeda and ABB last week said that the dollar price can be traded up to 114 rupees in the interbank. Which was 110 taka 50 paisa that day. Three and a half rupees have been increased together.

The source said that this decision was taken with the approval of the central bank. For this reason, the maximum transaction amount of 114 taka can be reported to Bangladesh Bank for 114 taka. Meanwhile, related sources said that banks in crisis from Bangladesh Bank bought dollars at the rate of 111 taka and sold them at 111 taka. They did not make any profit. However, they can buy at 114 taka and sell at 114 taka 44 paise in interbank. In this case, it is advised to take written form from the customer to avoid audit trouble. That is to say about advance dollar booking. In this, the real dollar price will go above 120 rupees at the import level.

The article is in Bengali

Tags: reserve fell billion


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