Despite THE ONGOING COVID 19 pandemic that has crippled major economies all over the world, Bangladesh continues to perform well and rake in huge remittances from its people abroad.
As a result, its forex reserves of Bangladesh have hit a record US$37.10 billion . It is the highest amount of remittance in a single month ever recorded by Bangladesh.
The surge in remittance and enhanced aid from developing partners contributed to a rise in forex reserves to $36.14 billion on July 02, which rose to TO $37.10 BILLION by Monday, said a press release by the Finance Ministry.
The previous highest reserves amounting $36.016 billion were recorded just a month back on 30 June.
Three weeks ago , Hasina raised the idea to use forex so that the central Bank of the country Bangladesh Bank can explore more options and examine the prospect of lending money from such reserves.
The PM outlined a proposal for Bangladesh Bank and others agencies to study the possibilities of taking loans from the foreign currency reserves keeping a handy amount of Forex in hand to meet the import expenses on 6th July during her interaction with officials .
Prime Minister Hasina , chairing the Executive Committee of the National Economic Council ( ECNEC) meeting on a virtual platform 3 on 6 July, directed the departments to explore opportunities of utilizing these reserves for the improvement of the economy and implementation of major infrastructure projects.
She asked officials to explore the practicality of borrowing funds from the foreign exchange reserves as project loans ,AMONG OTHER THINGS.
“We take dollars as loans from foreign sources. We can take loans from our own funds. Bangladesh Bank preserves the forex reserve; we may take loans from it,” said Hasina, as the Planning Minister MA Mannan quoted her as saying .
The Planning Minister said he was in favour of taking loans from the reserve for the development projects. “Though the interest rate of the foreign loan is low, there are many conditions attached to foreign debts. So, ultimately the project costs go high in many cases because of SUCH conditions,” he said.
Mannan SAID, “The Prime Minister thinks that keeping adequate reserves to cover the cost of imports for three months is usually safe ” .
“So, we may take loans from our own fund keeping the logical amount of reserve in hand to meet the import expenditures,” Planning Minister of Bangladesh added.
The release said the inflow of remittances showed an incredibly positive trend at the beginning of the fiscal year 2020-21 (FY21). Expatriate Bangladeshis sent around $2.242 billion remittances during the first 27 days of July in the current fiscal 2020-21.