Bangladesh’s forex reserves now $26.3 billion as per IMF formula

[Imran Khan]

Bangladesh’s forex reserves now $26.3 billion as per IMF formula​

United News of Bangladesh . Dhaka | Published: 16:38, Nov 08,2022








Bangladesh’s foreign exchange reserves is falling due to meeting import demand of essential goods and a downward trend in remittance-export incomes, the latest data of Bangladesh Bank revealed.
After paying $1.35 billion to Asian Clearing Union as an import bill for September-October, and $131 million spent to meet LC liabilities, the forex reserves stood at $34.3 billion at the end of November 7.
However, if the formula of the International Monetary Fund is followed, the forex reserves stand at $26.3 billion.
Bangladesh Bank spokesperson Md Abul Kalam Azad told UNB that the liabilities of import payment are decreasing gradually after reining in opening of import LCs.
US $1.35 billion in ACU bill has been paid in September-October. Earlier, Bangladesh had to pay $1.73 billion for July-August period and $1.96 billion during May-June, he said.
The central banks and the monetary authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently members of the ACU.
According to the suggestion of International Monetary Fund, if $8 billion used as export development fund is excluded from the foreign exchange reserves, then the reserves stand at $26.3 billion. It is the lowest in 7 years.
Forex reserves were $35.8 billion on October 30, 2022.
Bangladesh’s foreign exchange reserves reached an all-time high of $48.06 billion in August 2021 and a record low of $42.5 million in August 1974.
Despite curbing imports, the foreign exchange reserves are falling sharply.
Opening of new LCs has been reduced. But the liability of the previously opened LCs is now payable in terms of arrears or late payment. Due to this, the dollar crisis is becoming more acute.
Bangladesh will be able to meet the import expenses of three and a half months with the current forex reserves.
Regarding the tightening of imports, economists said that forex reserves cannot be increased by stopping imports. Domestic products need some imported materials. If not, the economy will be adversely affected.
Former governor of Bangladesh Bank Dr Salehuddin Ahmed said that declining reserves were a major challenge for the economy.
‘Now we have to think about how to meet this challenge. First, we need to emphasize increasing remittances. Dollar rates should be left to the market,’ he said.
Banks will buy dollars at the required rate. It does not matter whether it is Tk 112 or more. It is important to raise remittance now, he said.

Bangladesh’s forex reserves now $26.3 billion as per IMF formula

Bangladesh’s foreign exchange reserves is falling due to meeting import demand of essential goods and a downward trend in remittance-export incomes, the latest data of Bangladesh Bank revealed....

www.newagebd.net

 

[AmiEktaKharapChele]

Gawar giving "haha" reaction... Reminiscent of said gawars parents reaction upon seeing him for the first time.

 

[Cheepek]

Bangladesh’s forex reserves now $26.3 billion as per IMF formula​

United News of Bangladesh . Dhaka | Published: 16:38, Nov 08,2022








Bangladesh’s foreign exchange reserves is falling due to meeting import demand of essential goods and a downward trend in remittance-export incomes, the latest data of Bangladesh Bank revealed.
After paying $1.35 billion to Asian Clearing Union as an import bill for September-October, and $131 million spent to meet LC liabilities, the forex reserves stood at $34.3 billion at the end of November 7.
However, if the formula of the International Monetary Fund is followed, the forex reserves stand at $26.3 billion.
Bangladesh Bank spokesperson Md Abul Kalam Azad told UNB that the liabilities of import payment are decreasing gradually after reining in opening of import LCs.
US $1.35 billion in ACU bill has been paid in September-October. Earlier, Bangladesh had to pay $1.73 billion for July-August period and $1.96 billion during May-June, he said.
The central banks and the monetary authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently members of the ACU.
According to the suggestion of International Monetary Fund, if $8 billion used as export development fund is excluded from the foreign exchange reserves, then the reserves stand at $26.3 billion. It is the lowest in 7 years.
Forex reserves were $35.8 billion on October 30, 2022.
Bangladesh’s foreign exchange reserves reached an all-time high of $48.06 billion in August 2021 and a record low of $42.5 million in August 1974.
Despite curbing imports, the foreign exchange reserves are falling sharply.
Opening of new LCs has been reduced. But the liability of the previously opened LCs is now payable in terms of arrears or late payment. Due to this, the dollar crisis is becoming more acute.
Bangladesh will be able to meet the import expenses of three and a half months with the current forex reserves.
Regarding the tightening of imports, economists said that forex reserves cannot be increased by stopping imports. Domestic products need some imported materials. If not, the economy will be adversely affected.
Former governor of Bangladesh Bank Dr Salehuddin Ahmed said that declining reserves were a major challenge for the economy.
‘Now we have to think about how to meet this challenge. First, we need to emphasize increasing remittances. Dollar rates should be left to the market,’ he said.
Banks will buy dollars at the required rate. It does not matter whether it is Tk 112 or more. It is important to raise remittance now, he said.

Bangladesh’s forex reserves now $26.3 billion as per IMF formula

Bangladesh’s foreign exchange reserves is falling due to meeting import demand of essential goods and a downward trend in remittance-export incomes, the latest data of Bangladesh Bank revealed....

www.newagebd.net

Almost 30% fudging, why they mix EDF with foreign reserves though....

 

[EasyNow]

Bangladesh’s forex reserves now $26.3 billion as per IMF formula​

United News of Bangladesh . Dhaka | Published: 16:38, Nov 08,2022








Bangladesh’s foreign exchange reserves is falling due to meeting import demand of essential goods and a downward trend in remittance-export incomes, the latest data of Bangladesh Bank revealed.
After paying $1.35 billion to Asian Clearing Union as an import bill for September-October, and $131 million spent to meet LC liabilities, the forex reserves stood at $34.3 billion at the end of November 7.
However, if the formula of the International Monetary Fund is followed, the forex reserves stand at $26.3 billion.
Bangladesh Bank spokesperson Md Abul Kalam Azad told UNB that the liabilities of import payment are decreasing gradually after reining in opening of import LCs.
US $1.35 billion in ACU bill has been paid in September-October. Earlier, Bangladesh had to pay $1.73 billion for July-August period and $1.96 billion during May-June, he said.
The central banks and the monetary authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently members of the ACU.
According to the suggestion of International Monetary Fund, if $8 billion used as export development fund is excluded from the foreign exchange reserves, then the reserves stand at $26.3 billion. It is the lowest in 7 years.
Forex reserves were $35.8 billion on October 30, 2022.
Bangladesh’s foreign exchange reserves reached an all-time high of $48.06 billion in August 2021 and a record low of $42.5 million in August 1974.
Despite curbing imports, the foreign exchange reserves are falling sharply.
Opening of new LCs has been reduced. But the liability of the previously opened LCs is now payable in terms of arrears or late payment. Due to this, the dollar crisis is becoming more acute.
Bangladesh will be able to meet the import expenses of three and a half months with the current forex reserves.
Regarding the tightening of imports, economists said that forex reserves cannot be increased by stopping imports. Domestic products need some imported materials. If not, the economy will be adversely affected.
Former governor of Bangladesh Bank Dr Salehuddin Ahmed said that declining reserves were a major challenge for the economy.
‘Now we have to think about how to meet this challenge. First, we need to emphasize increasing remittances. Dollar rates should be left to the market,’ he said.
Banks will buy dollars at the required rate. It does not matter whether it is Tk 112 or more. It is important to raise remittance now, he said.

Bangladesh’s forex reserves now $26.3 billion as per IMF formula

Bangladesh’s foreign exchange reserves is falling due to meeting import demand of essential goods and a downward trend in remittance-export incomes, the latest data of Bangladesh Bank revealed....

www.newagebd.net

This is a very sly/misleading piece of journalism.

If by IMF formula the reserve is $26b - why are they comparing it to previous figures based on the old formula?

It says Forex was $35b in October and now $26b - was the October figure an IMF formula one? They need to stick to one standard if they are comparing. The official figure in October was $35.8b and the official figure in November is $34.3b.

Without doubt BD has challenges but the reporting is ridiculous.

 

[Imran Khan]

This is a very sly/misleading piece of journalism.

If by IMF formula the reserve is $26b - why are they comparing it to previous figures based on the old formula?

It says Forex was $35b in October and now $26b - was the October figure an IMF formula one? They need to stick to one standard if they are comparing. The official figure in October was $35.8b and the official figure in November is $34.3b.

Without doubt BD has challenges but the reporting is ridiculous.

but BD dont have 34bn$ sir

its invested in business and given loans to others and so on .

tell me simply how can BD add sri lankan loan money in Forex reserves ? do you think its logical ?

 

[bluesky]

but BD dont have 34bn$ sir

its invested in business and given loans to others and so on .

tell me simply how can BD add sri lankan loan money in Forex reserves ? do you think its logical ?

Ask any BAL idiot in this Forum, he will negate your correct opinion. That BD is near Bankrupt can be seen when it has asked IMF bailout.

 

[Imran Khan]

Ask any BAL idiot in this Forum, he will negate your correct opinion. That BD is near Bankrupt can be seen when it has asked IMF bailout.

BD is not bankrupt but same time BD dont have 34bn$ too

bd have 26bn$ reserves rest of the 8bn$ are loans and investemnts and export development fund etc .all IMF said to BD is count the money which you have in pocket and not pocket of others .until SL did not return your loans do not count 200mn$ in reserves .

 

[bluesky]

Almost 30% fudging, why they mix EDF with foreign reserves though....

It is to show the FE is bigger than the actual. Well, this is our BAL party of Golden Bangladesh.

 

[bluesky]

This is a very sly/misleading piece of journalism.

If by IMF formula the reserve is $26b - why are they comparing it to previous figures based on the old formula?

It says Forex was $35b in October and now $26b - was the October figure an IMF formula one? They need to stick to one standard if they are comparing. The official figure in October was $35.8b and the official figure in November is $34.3b.

Without doubt BD has challenges but the reporting is ridiculous.

BAL crony, better you accept that your top ups have stolen money and then are trying to camouflage. The same with you.

The BAL govt has not deducted the money it helped SL as well as $8 billion that has been disbursed among BAL business.

Bring these two monies back and claim BD has $ 34 billion. BAL always writes fictions and distorts figures. It is a thief party infested with swindlers who change data as you always do.

 

[mb444]

Bangladesh is still getting somewhere near abouts $3.5b+ inflow of funds every month.

Sensationalist article although undoubtedly situation is one of concern.

 

[Turingsage]

IMF is the bank of last resort. Countries are entertained by the IMF ONLY when the situation has got to a point where funding from the markets (All kinds of Banks and bonds) is no longer possible, or possible at uncomfortably usurious rates that would certainly lead to default.
Effectively every avenue has closed, IMF then will offer funds to structurally reform as per what IMF prescribes. This always involves taking some very bitter medicine and intrusive oversight.
Countries can no longer fudge reserve figures and massage GDP growth rates without the IMF gently correcting government falsification.

 

[mb444]

IMF is the bank of last resort. Countries are entertained by the IMF ONLY when the situation has got to a point where funding from the markets (All kinds of Banks and bonds) is no longer possible, or possible at uncomfortably usurious rates that would certainly lead to default.
Effectively every avenue has closed, IMF then will offer funds to structurally reform as per what IMF prescribes. This always involves taking some very bitter medicine and intrusive oversight.
Countries can no longer fudge reserve figures and massage GDP growth rates without the IMF gently correcting government falsification.

Not entirely accurate.

For countries like BD institutional lenders are the only source of funds when it comes to hard currency.

The issue for BD is not lack of money, it is lack of hard currency.

BD has never borrowed from international banks ever and has not developed any infrastructure to issue bonds. BD financial system is closed.

This is also the reason why BD loan to GDP ratio is so much lower than countries in the region.

 

[Turingsage]

I never said Bangladesh has issued bonds. was talking generally to cover how countries raise capital.
Does the govt not borrow from the world bank, adb , State bank of Bangladesh, etc ?
If Bangladesh is cash rich then all it needs is to do is to use it to buy hard currency.

 

[Destranator]

Does the govt not borrow from the world bank, adb , State bank of Bangladesh, etc ?

I believe @mb444 meant borrowing from foreign commercial banks for fiscal support.

If Bangladesh is cash rich then all it needs is to do is to use it to buy hard currency.

Does not work like that. BDT is not an international currency. Only way for BD to access forex is through incomes, grants and loans from abroad.

 

[bluesky]

IMF is the bank of last resort. Countries are entertained by the IMF ONLY when the situation has got to a point where funding from the markets (All kinds of Banks and bonds) is no longer possible, or possible at uncomfortably usurious rates that would certainly lead to default.
Effectively every avenue has closed, IMF then will offer funds to structurally reform as per what IMF prescribes. This always involves taking some very bitter medicine and intrusive oversight.
Countries can no longer fudge reserve figures and massage GDP growth rates without the IMF gently correcting government falsification.

Note that some BAL cronies are taking a positive stance by saying that BD is receiving $3.5 billion per month. What a rosy picture he is painting without a base.

Exports are down because Hasina Bibi and her BAL colleagues have stolen away the dollars and the country has little money to import the raw materials needed to produce them.

Remittances are down because BAL money launderers pay 10 Taka more than the govt rate. So, obviously they tend to send money via Hundi instead of sending via banks.

Many expatriates are waiting for a rosy day when the exchange rate hits 200 Taka per dollar.