Bangladesh forex reserves top record $10 billion
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Al-zakir
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ofcourse we had few loans from WB, ADB but the money you see in Banks is our hard earned money. These are not stacked by loans, grants or FDI. Its our money.
I think it's time BD stop taking these worthless loan for WB becasue it comes with anti-bd policies. Why are we still taking loan from foreign banks when we have enough money flowing in from our own?
TopCat
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In fact we dont. IMF wanted to close down their office in BD this year for not having any program in Bangladesh. But extended their stay for another couple (may be) of years only with Govt request.
WB/ADB/IDB loans are not that bad. They are soft loan and only thing they want transparency, so some conditions. We dont take much from them either except big project like Padma bridge etc.
Yes, the Honourable Govt of Pakistan took away all the money and gold reserves from the eastern wing during the last days of war in 1971. We started with only $34 in our Central Bank.Did you say 34 Dollars as foreign reserve? :O I blow away more than that in a single sitting in a PUB
Really cant believe its 10 Billion from 34 that day. Good show and keep it up. Use the same judiciously for the development of infrastructure of BD. Best of Luck
Patriot
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That is very good and i think Government of BD should spend all that money on health care and development projects..I hope Bangladesh becomes strong economically..
---------- Post added at 10:10 PM ---------- Previous post was at 10:09 PM ----------
---------- Post added at 10:10 PM ---------- Previous post was at 10:09 PM ----------
Nope.As of November, 2009..the foriegn reserves are at 14 Billion USD but we are in a lot of debt and IMF loans.
zagahaga
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i know ! inshallah you will get there and you do slap anyone who messes with you
I thought I should clarify what leon said about the idle money. A report a few weeks ago said the Banks are having Tk.41,000 crores (equivalent to about $6 billion) of idle money in their vaults without being invested. As a result, the rate of interest is coming down. The reason for idle money should be due to recession throughout the world.
But, in case of BD this time it is more due to lack of electricity. There are entrepreneurs who would like to invest capital in a manufacturing factory. But, the country's production of power is very low. Therefore, even if an entrepreneur wants to invest, he would not do so unless he is assured of steady supply of electricity to run his machines.
Govt is trying its best to build power stations and increase the power output. However, it cannot be done in a day. Within the next one year there will be marginal improvement in the power sector and it is supposed to improve every year. In such a situation, there will be investment of capital in industry. This will certainly push up our GDP.
See the link below to know about our immediate power development projects:
Bidding today for 10 power plants
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leonblack08
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Dr.Atiur Rahman,the govt. of Bangladesh bank gave an especial thanks to the farmers of Bangladesh.As because of their hard work and Allah's grace,we were able to produce a lot in the food sector.This in turn caused a drastic reduce in imports.This in addition to increased remittance enabled us to reach this position.
BTW Bangladesh army's income from UN mission stood at Tk.4500 crore this year.So a significant contribution from army too.
BTW Bangladesh army's income from UN mission stood at Tk.4500 crore this year.So a significant contribution from army too.
South Asian Media Net
Record reserve no solace for govt
Saturday, November 14,2009
DHAKA: The build-up of foreign exchange reserve leaves no room for complacency for the government at a time when both public and private investments look stymied and exports decline, some economists and business analysts say.
The record reserve, which has crossed the $10 billion mark, might turn useless if productive imports and private sector credit disbursement continue to slow, they feel.
They also warned that the huge amount of idle money could rather cause inflation and suggested that the government speed up implementation of public sector development projects and facilitate the private sector investors.
Pointing out the good sides of the big reserve, a research director of the Bangladesh Institute of Development Studies, Zaid Bakht, said such an amount would raise the confidence of foreign investors in Bangladesh and enable the government to tackle any crisis of reasonable proportions.
The government has little reason to be happy with the $10 billion plus reserve because many economic indicators are not pleasant, the economist observed.
The decline in private sector credit disbursement, import of raw materials and capital machineries and the frustrating sluggishness in implementing the Annual Development Projects are yellow signals to the economy.
The Bangladesh Banks data shows that the value of settled import bills declined by more than 19 per cent in the first quarter of the current fiscal year. In the July-September period of the previous fiscal year the countrys import spending increased by 35 per cent compared to the same period in the 2007-08 fiscal year.
The Bangladesh Bank is yet to provide the break-up of the data for September, but the data for July-August showed that productive imports had declined heavily. Import of capital machinery, in terms of value, declined by 22 per cent in the first two months of the current fiscal year.
The Bangladesh Banks data also showed that import of industrial raw materials declined by 22 per cent in the July-August period in comparison to the previous year and stood at only $1.88 billion.
Masih Malik Chowdhury, a former vice-president of the Institute of Chartered Accountants of Bangladesh, said that the heavy decline in the procurement of capital machineries and raw materials proved that investments have remained meagre and the industries are in a bad shape.
The burgeoning reserve indicates more earning and less spending, which is not at all good for a developing economy, said Masih who is a member of the executive committee of the Bangladesh Economics Association.
A senior business leader said that many other economic indicators are depressed because of the massive fall in export and so the record reserve is no reason for optimism.
Citing the 11.66 per cent decrease in the growth of exports in the first quarter of the current fiscal year, the business leader, who owns several garment factories, said, Hundreds of jobs are being cut every month in the export industries.
He also cited certain data of the Bangladesh Bank that showed that in the July-September period of the current fiscal year the credit disbursement to the private sector had increased by only four per cent.
Even in the very vulnerable period of July-September in 2008 in the pre-election months, when entrepreneurs became panicked by a military-backed interim government, the growth was five per cent, he recalled.
The business leader, who has a stake in a major private sector bank, said the Bangladesh Bank had bought nearly one billion dollars from the market in the last three months only to ensure that mounting reserve and declining import did not have an adverse impact on foreign exchange rates.
Zaid Bakht is frustrated at the poor progress in the implementation of ADP projects as he thinks that more government spending could have helped to make the economy more vibrant and encourage the private sector investors.
The government itself had argued that its expansionary budget was a tool to offset the possible impact of global recession, said Bakht. But the slow pace in implementing the ADP and developing infrastructure for business is in no way good for the economy.
Hoping that the government would increase the speed in implementing ADP projects, he said the confidence of the investors has to be restored by setting clear deadlines for ensuring enough electricity and gas for the industries.
If the large foreign exchange reserve does not create jobs, eliminate poverty and accelerate development of the economy, it is quite useless, Bakht pointed out.
Bangladesh Bank governor Atiur Rahman earlier offered to invest $500 million from the foreign exchange reserves in the governments public-private partnership scheme for infrastructure projects.
But the government is yet to frame the guidelines for PPP though four months of the fiscal year have already passed.
Record reserve no solace for govt
Saturday, November 14,2009
DHAKA: The build-up of foreign exchange reserve leaves no room for complacency for the government at a time when both public and private investments look stymied and exports decline, some economists and business analysts say.
The record reserve, which has crossed the $10 billion mark, might turn useless if productive imports and private sector credit disbursement continue to slow, they feel.
They also warned that the huge amount of idle money could rather cause inflation and suggested that the government speed up implementation of public sector development projects and facilitate the private sector investors.
Pointing out the good sides of the big reserve, a research director of the Bangladesh Institute of Development Studies, Zaid Bakht, said such an amount would raise the confidence of foreign investors in Bangladesh and enable the government to tackle any crisis of reasonable proportions.
The government has little reason to be happy with the $10 billion plus reserve because many economic indicators are not pleasant, the economist observed.
The decline in private sector credit disbursement, import of raw materials and capital machineries and the frustrating sluggishness in implementing the Annual Development Projects are yellow signals to the economy.
The Bangladesh Banks data shows that the value of settled import bills declined by more than 19 per cent in the first quarter of the current fiscal year. In the July-September period of the previous fiscal year the countrys import spending increased by 35 per cent compared to the same period in the 2007-08 fiscal year.
The Bangladesh Bank is yet to provide the break-up of the data for September, but the data for July-August showed that productive imports had declined heavily. Import of capital machinery, in terms of value, declined by 22 per cent in the first two months of the current fiscal year.
The Bangladesh Banks data also showed that import of industrial raw materials declined by 22 per cent in the July-August period in comparison to the previous year and stood at only $1.88 billion.
Masih Malik Chowdhury, a former vice-president of the Institute of Chartered Accountants of Bangladesh, said that the heavy decline in the procurement of capital machineries and raw materials proved that investments have remained meagre and the industries are in a bad shape.
The burgeoning reserve indicates more earning and less spending, which is not at all good for a developing economy, said Masih who is a member of the executive committee of the Bangladesh Economics Association.
A senior business leader said that many other economic indicators are depressed because of the massive fall in export and so the record reserve is no reason for optimism.
Citing the 11.66 per cent decrease in the growth of exports in the first quarter of the current fiscal year, the business leader, who owns several garment factories, said, Hundreds of jobs are being cut every month in the export industries.
He also cited certain data of the Bangladesh Bank that showed that in the July-September period of the current fiscal year the credit disbursement to the private sector had increased by only four per cent.
Even in the very vulnerable period of July-September in 2008 in the pre-election months, when entrepreneurs became panicked by a military-backed interim government, the growth was five per cent, he recalled.
The business leader, who has a stake in a major private sector bank, said the Bangladesh Bank had bought nearly one billion dollars from the market in the last three months only to ensure that mounting reserve and declining import did not have an adverse impact on foreign exchange rates.
Zaid Bakht is frustrated at the poor progress in the implementation of ADP projects as he thinks that more government spending could have helped to make the economy more vibrant and encourage the private sector investors.
The government itself had argued that its expansionary budget was a tool to offset the possible impact of global recession, said Bakht. But the slow pace in implementing the ADP and developing infrastructure for business is in no way good for the economy.
Hoping that the government would increase the speed in implementing ADP projects, he said the confidence of the investors has to be restored by setting clear deadlines for ensuring enough electricity and gas for the industries.
If the large foreign exchange reserve does not create jobs, eliminate poverty and accelerate development of the economy, it is quite useless, Bakht pointed out.
Bangladesh Bank governor Atiur Rahman earlier offered to invest $500 million from the foreign exchange reserves in the governments public-private partnership scheme for infrastructure projects.
But the government is yet to frame the guidelines for PPP though four months of the fiscal year have already passed.
Iggy
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Good going Bangladesh!! Invest it on basic infrastructure like better transportation and electricity..it will help investors come to your country..And our countries ( I mean south Asia) got plenty of Cheap labor ...this will help you increase your Forex reserve and you can spend on defense after improving your economy ..
Aramy in any country should stand only for nation defense and interest. When a force goes on to become money making enterprise, that force become subject to condition and influence of source of that money. Its appalling to see people who put on fake show for Bangladesh defense by deflecting threat perception, are boasting on mercenary characters (UN mission as money making vehicle) army adapted lately. And those who boast and cheer army’s foreign earning as an achivement are bigger enemy of Bangladesh defense than real enemies.
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leonblack08
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Apart from money in the UN missions,two things also comes along with it.One is war experience and the other is reputation.We need both of it.Though they get little war experience,yet at times they are ambushed.This attributes to their skills.
And of course we need the money,we don't have a strong economy neither we have enough fund to support strong military.If money is coming,so be it.In case you don't know,Bangladesh military and even Pakistan military runs projects like MILBUS(as termed by Ayesha Siddiqa),which acts like an enterprise.Pakistan army has the highest number of troops in UN missions.Now did this turn Pakistan army into mercenaries?If you think so,then you better debate with the Pakistani friends here.
As I can see Pakistan army is still aware of its threats and using the money in procurement.
And its not only that we are only buying BTR-80s.Last year we procure a significant number of Mi-17s.Now these are necessary for our military.And they are not even considered in the defence budget,as far as I know.So these are bonus for the army.
Some people think themselves as "Mr.Know it all".You are one of them.That's why we often find them ranting on these boards.
Or you are just too jealous of our country's success.May be because it isn't even your country.....who knows?
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Yes, this is what I have been suspecting all along that he is certainly not a BD national. This SHABJANTA does not see any thing good in my country. He referred to the comments of BB governor to criticize even the $10 billion foreign currency reserves. It will ruin the country, is his conclusion. OLPO BIDDYA BHOYONKORI.
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