Bangladesh Forex reserve nears $45b on higher remittance

[bluesky]

Bangladesh forex reserve nears $45b on higher remittance

The country’s foreign exchange reserve has reached near $45 billion mainly due to a slowdown in import payments following the fresh spike in Covid-19 infections and surge in remittance ahead of Eid-ul-Fitr, the biggest...

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Forex reserve nears $45b on higher remittance
Staff Correspondent | Published: 23:22, Apr 27,2021


The country’s foreign exchange reserve has reached near $45 billion mainly due to a slowdown in import payments following the fresh spike in Covid-19 infections and surge in remittance ahead of Eid-ul-Fitr, the biggest festivals of the Muslims.

With a remittance inflow of $1.59 billion in the first 22 days of April, the country has fetched a record $20.19 billion in remittance till April 22 of 2020-2021, with more than two months in hand till the end of the fiscal year.

The reserve increased to $44.7 billion on April 27, meaning that it grew by around $1.09 billion in the last 22 days.

Given the increased public movement and economic activities before imposition of fresh restrictions on movement, the reserve pile-up slowed down and the reserve dropped to $43.61 billion on April 5 after reaching $44.05 billion on February 28.

The central bank had slowed down the purchase of the greenback from local banks in the last couple of months as demand for the currency was on the rise along with the growing volume of imports during the period.

The BB data showed that the country’s import payments increased by 1.91 per cent to $37.07 billion during the period under consideration against $36.37 billion payments in the same period of FY20.
BB officials, however, said that import had dropped significantly following the fresh spike in Covid-19 infections and imposition of restrictions on movement from April 14.

The country’s reserve started to pile up in June 2020 following the coronavirus outbreak in the country on March 8 and the subsequent imposition of movement restrictions, causing economic activities to come to a standstill.

When economic activities almost came to a halt, the surge in remittance inflow compelled the BB to purchase the greenback heavily from the local market to keep the dollar rate stable at around Tk 84.8.

As a result, the reserve reached the $34-billion, $35-billion and $36-billion marks in June and reached the $42-billion mark in just six months.

The reserve has risen by around $11 billion since the Covid-19 outbreak in the country to reach around $45 billion on Tuesday.

 

[Surya 1]

Thumbs up for Bangladesh. BD is a country with great culture. It has a very bright future. It is all set to rise at a very fast pace after vietnam and India by 2050 as per Goldman sachs report.

 

[bluesky]

Thumbs up for Bangladesh. BD is a country with great culture. It has a very bright future. It is all set to rise at a very fast pace after vietnam and India by 2050 as per Goldman sachs report.

Why 2050? And who is Goldman Sachs? Our Hasina Bibi has declared BD to become a developed country in 2041.

 

[Surya 1]

Why 2050? And who is Goldman Sachs? Our Hasina Bibi has declared BD to become a developed country in 2041.

She is a very strong lady. I do not say when BD will become a Developed nation. I say that it will be the third fastest growing economy after Vietnam and India.

 

[UKBengali]

She is a very strong lady. I do not say when BD will become a Developed nation. I say that it will be the third fastest growing economy after Vietnam and India.

BD will be the fastest growing economy as India is multi-ethnic and already behind in growth rate compared to BD, and Vietnam is twice as rich and it will find it harder to grow faster than a poorer BD that slowly catches up over the next 2-3 decades.

 

[Surya 1]

BD will be the fastest growing economy as India is multi-ethnic and already behind in growth rate compared to BD, and Vietnam is twice as rich and it will find it harder to grow faster than a poorer BD that slowly catches up over the next 2-3 decades.

It is ok if you think very ambitious for your country but this is not said by me. It is a goldman sachs report. India is not behind BD in growth rate. BD has a limitation of growing in limited areas while India can produce anything ranging from textiles to spacecraft and nuclear reactors. Indian are excellent managers and they have proved that by domination all big corporates, WB, IMF etc. You can not find a single BD guy in any comparative position. However, I see BD as country with potential. It has a bright future though they can not match Indians in talent.

 

[UKBengali]

It is ok if you think very ambitious for your country but this is not said by me. It is a goldman sachs report. India is not behind BD in growth rate. BD has a limitation of growing in limited areas while India can produce anything ranging from textiles to spacecraft and nuclear reactors. Indian are excellent managers and they have proved that by domination all big corporates, WB, IMF etc. You can not find a single BD guy in any comparative position. However, I see BD as country with potential. It has a bright future though they can not match Indians in talent.

These are the same organisations for last 2 decades overestimated India growth rate and underestimated BD growth.

IMF has finally realised this and thinks BD will grow 1% quicker on average for the next 5 years.

BD is a smaller country and so does not need to produce the range of goods as much larger India.

If you look at internal BD economy, it is very diversified with domestic market leaders in industries like electronics, pharmaceuticals, IT and shipbuilding.
Although their exports are tiny now, the growth rate is a lot higher than textile exports and so they will turn into decent revenue earners for BD in the latter half of this decade.

Remember BD had to start pretty much from scratch in 1971 and India had both the legacy of the British industries and that 24 year start from 1947.

Food for thought - BD and India are equal in GDP per capita nominal now when BD was at half the Indian level in 2007. BD is a faster growing economy than India.

 

[Surya 1]

These are the same organisations for last 2 decades overestimated India growth rate and underestimated BD growth.

IMF has finally realised this and thinks BD will grow 1% quicker on average for the next 5 years.

BD is a smaller country and so does not need to produce the range of goods as much larger India.

If you look at internal BD economy, it is very diversified with domestic market leaders in industries like electronics, pharmaceuticals, IT and shipbuilding.
Although their exports are tiny now, the growth rate is a lot higher than domestic market and so they will turn into decent revenue earners for BD in the latter half of this decade.

Remember BD had to start pretty much from scratch in 1971 and India had both the legacy of the British and that 24 year start from 1947.

Food for thought - BD and India are equal in GDP per capita nominal now when BD was at half the Indian level in 2007. BD is a faster growing economy.

They have underestimated India's growth rate. They had said that India will grow at -10% in 2020-21 but India grew at -6% or even less.

Yes BD is doing well in that sectors but their output is just fraction of what India has. You can not grow very fast with only Textile as a leading Industry.

They says that BD will grow 1% faster but they say that India will grow at 12.8% which is double than estimate. So what you say truth for BD and even Bigger truth for India. Now they estimates 11 to 12.8% growth rate for India in 2021-22 and they have revised the 2022-23 growth rate to 7% from 6%.

Now look, BD has 45 bn USD foreign exchange which have added to our treasure in less than 6 months.

 

[UKBengali]

They have underestimated India's growth rate. They had said that India will grow at -10% in 2020-21 but India grew at -6% or even less.

Yes BD is doing well in that sectors but their output is just fraction of what India has. You can not grow very fast with only Textile as a leading Industry.

They says that BD will grow 1% faster but they say that India will grow at 12.8% which is double than estimate. So what you say truth for BT and even Bigger truth for India. Now they estimates 11 to 12.8% growth rate for India in 2021-22 and they have revised the 2022-23 growth rate to 7% from 6%.

India will be ok but it cannot grow fast like BD as it is multi-ethnic - too many compromises needed just to hold the country together as one state will argue with another when it comes to development direction of the country as a well.

Yes BD needs to diversify but it has the whole of this decade to make this happen - other sectors when you add in domestic revenue are multi-billion dollar industries and textile is not as dominant as the exports make it look out to be.

BD is growing its current tiny exports in non-textile industries like pharma and electronics a lot quicker than textiles and so you will see the difference towards the latter half of this decade.

Over the last decade a lot of infrastructure has been built or is being built to support the continuing fast growth of the BD economy. There is an integrated long-term decades long plan that was put in place a decade ago.

India is expected to grow 11-12% this year as it shrunk by nearly this amount last year. BD grew 5% last year and forecast around 6% this year.

Let us stick with what IMF thinks and that is BD will grow 1% a year quicker than India over the next 5 years.

 

[Suriya]

For a country that claims to have GDP per capita more than India's,
Bd's foreign exchange reserve is 12 times less than India while population is 8 times less than India.

 

[DalalErMaNodi]

For a country that claims to have GDP per capita more than India's,
Bd's foreign exchange reserve is 12 times less than India while population is 8 times less than India.

GDP per capita has nothing to do with Forex Reserves.


India has more people abroad remitting to India than BD, simply because of the higher population.



BD has a higher per capita income to India or there abouts, neck and neck, so much for being a super power, you can't keep up with the machliwala bangali right ?




Next time come up with better excuse to discredit others growth.

 

[Bilal9]

It is ok if you think very ambitious for your country but this is not said by me. It is a goldman sachs report. India is not behind BD in growth rate. BD has a limitation of growing in limited areas while India can produce anything ranging from textiles to spacecraft and nuclear reactors. Indian are excellent managers and they have proved that by domination all big corporates, WB, IMF etc. You can not find a single BD guy in any comparative position. However, I see BD as country with potential. It has a bright future though they can not match Indians in talent.

These are chest beating words.

Talent does not grow on Indian trees only. I don't understand the logic. There are many "excellent" Bangladeshi managers overseas, but not that many compared to India because Indian expats simply number higher.

I will admit Indians have benefited by the excellent education system and training in English language left by the British, that is a legacy left by Gora Sahibs, not Indians (in spite of this - Indian postal system and Railway system is still very undeveloped compared to China, Gora will not come back to fix it).

Japanese or Chinese did not need English or a colonial education system to progress. It is well apparent that Indians simply lack the organizational skills and discipline to pull off simple things like revamping Railway and Postal systems.

It is not what you produce, but what you can sell/export overseas and internally to add value.

India is mainly an economy driven by internal consumption - and measures quite poorly when compared to China which is an export-based juggernaut. Your IMF Indian manager states this every year now.

And having capability to "produce anything ranging from textiles to spacecraft and nuclear reactors" is expected in a larger country of 1.2 Billion (or more) like India. It is not expected in Bangladesh which is one eighth the size of India's economy. For the size, Bangladesh has not done badly. It beat India in every major HDI and health/education indicator and beat India's per capita GDP - which is set to continue. If we can feed/clothe our people and give them toilets - we're fine. We don't need Mars/moon mission while our people have to practice open defecation.

In Bangladesh, they don't practice non-inclusive development like in India - where poor people die on the way to the hospital because they haven't been vaccinated and even in the hospital because of lack of oxygen supply. Instead of researching Mars/Moon missions, shouldn't you concentrate on researching oxygen generators? Some superpower - when UK and US have to airlift oxygen generators to India. Pretty shameful really...

Let's talk reality instead of pie-in-the-sky stories fed by Modi.

So - India's development record is already bad in relation to China, now it has started to look the same vis-à-vis Bangladesh.

Chahiye bar bar - Modi ka Sarkar...

 

[Jobless Jack]

For a country that claims to have GDP per capita more than India's,
Bd's foreign exchange reserve is 12 times less than India while population is 8 times less than India.

Dont worry buddy.

The way your economy is tumbling, you are better off Learning Chinese langauge than lecturing about economics

 

[Bilal9]

India has more people abroad remitting to India than BD, simply because of the higher population.

By some measures - Bangladesh is the third largest remittance source for India, officially about $7-8 Billion yearly and probably double or triple that when you account for Hundi transfers.

Some remittance superiority for India with Bangladeshi money.

 

[Suriya]

Dont worry buddy.

The way your economy is tumbling, you are better off Learning Chinese langauge than lecturing about economics

I'm sure u are already fluent in Chinese and good at serving the Chinese.