Bangladesh’s foreign exchange reserves on Monday hit a record $45.10 billion amid the Covid-19 pandemic.
The previous highest reserves were recorded on September 5, 2017, when the amount was $33.68 billion.
Bangladeshi expatriates sent a record $154m on May 1 and 2 alone to Bangladesh. The reserves reached $45.10 billion for the first time on the day,
Serajul Islam, spokesperson and Executive Director of the central Bank of the country mentioned, “Remittance inflow is increasing due to the upcoming Eid-ul-Fitr, the biggest festival of the Muslims. Every year, Bangladeshi expatriates send a huge amount of foreign currencies to the country ahead of EID.”
Remittance inflow has played a vital role behind the surge in foreign exchange reserves, said Dr Abul Barkat , eminent economist of Bangladesh to IANS on Monday night. The lower trend of import payment amid the pandemic is another reason for the increasing trend of reserve, he added.
With the reserve tally, it would be possible to meet the import payment of more than 10 months, said officials of Bangladesh Bank, the central bank of Bangladesh.
Expatriate Bangladeshis sent $2.06 billion in remittance in April, up 89.17% year-on-year from last April.
Remittance inflow increased 39% to $20 billion in July-April of the current fiscal year, compared to the same period of the last fiscal year.
Bangladeshi expatriates have sent more remittance than before to their relatives, created by the ongoing Covid-19 pandemic, confirmed the officials to IANS.
The record amount of reserve will reduce as March-April of this year ACU (Asian Clearing Union) liability stood $1,743 million, which will be settled on Tuesday.
By the end of March last year, the month when Covid-19 first hit the country, the reserves were $32.39 billion. By October 8, it increased by $7.61 billion, reaching $40 billion.
The reserves reached $39 billion in September of last year, $38.15 billion in August, $37.1 billion in July and hit the $34 billion, $35 billion, and $36 billion marks in June 2020.