Foreign exchange reserves top $13 billion again

[eastwatch]

Forex reserves top $13b again - bdnews24.com

Forex reserves top $13b again
Chief Economics Correspondent, bdnews24.com
Published: 2013-01-24 13:45:59.0 Updated: 2013-01-24 13:45:59.0

The foreign exchange reserves of the central bank have crossed $13 billion mark for a second time this month, driven by a robust growth in remittance inflow and export. The foreign currency reserves were at $13.06 billion, according to the Bangladesh Bank data released on Thursday.

Kazi Sayedur Rahman, General Manager of the Forex Reserve and Treasury Management Department of Bangladesh Bank, told bdnews24.com that strong inflow of remittance from Bangladeshi expatriates helped the reserves cross $13 billion mark.

“In addition, the exporters are bringing their payments in the country since the value of the US dollar has fallen. This has helped boost the flow of foreign currency.”

The central bank official said foreign aid commitments and a cut in transportation cost of export also played significant role to help fuel the reserve.

The reserves had exceeded $13 billion mark for the first time on Jan 7. But it dipped to $12.59 billion in the second week of January after Bangladesh made import payments of $590 million for the last two months (November and December) to the Asian Clearing Union (ACU).

The reserves surpassed the $13 billion mark again after 17 days due to the rapid inflow of foreign capital.

Inward remittance sent by the non-resident Bangladeshis stood at nearly $805 million in the first 18 days of January

In the year gone by, Bangladeshis living abroad set a new annual record for remittance, sending home a staggering $14.2 billion.

 

[eastwatch]

http://bdnews24.com/economy/2013/01/25/adverse-effect-of-forex-gain-in-mind

‘Adverse effect of forex gain in mind’Abdur Rahim Harmachi, Chief Economics Correspondent
Published: 2013-01-25 05:14:58.0 Updated: 2013-01-25 05:14:58.0

Finance Minister AMA Muhith expressed satisfaction at the forex reserve level that tipped the $ 13 billion mark for the second time this year, but at the same time he said he has to consider the adverse impacts of improved reserves. On Thursday, the forex reserve stood at $ 13.06 billion. Earlier on Jan 7, the forex reserve stood at $ 13.12 billion – topping all other previous records of Bangladesh.

The Minister was speaking to bdnews24.com at his office at the secretariat. If forex reserve increases, donors do not send aids, he said. "You are well off, what is the need for aids? They will say then,” said Muhith.

According to him, the reserve is satisfactory leaning on the remittance sent in by expatriate Bangladeshis.

He said an increase in remittance or reserve led to inflation – which the government was trying to keep within limits through the monetary policy of the Bangladesh Bank.

On questions whether the reserve would be employed in investment, Muhith responded positive. “Yes of course… Just wait and see.”

The Minister said not only remittance, but revenue, export, manpower export, foreign aids and foreign investments were at satisfactory levels.

He complained that media in Bangladesh were misers in praising Bangladesh, whereas in foreign countries Bangladesh is praised almost regularly.

On Wednesday, Prime Minister Sheikh Hasina announced that work of the Padma Bridge will begin with optional funding if World Bank does not agree to comply within the current month.

If this happens, then foreign currency would be required to build the Padma project.

Earlier when the WB had halted its funds, the Prime Minister had spoken of bridging the Padma with own funds.

Bangladesh Bank Governor Atiur Rahman then had said that foreign currency will be provided from reserve for the sake of Bangladesh’s economy.

On forex topping $ 13 billion mark for second time this month, Bangladesh Bank Forex Reserve and Treasury and Management division General Manager Kazi Saidur Rahman told bdnews24.com it was possible due to the positive flow of remittance.

“Besides, as the price for Dollar has come down, exporters are quickly bringing in their payment. This has contributed to a rise in the flow of foreign currency,” he said.

The official added that decreased export costs and a rise in project aid disbursement had also contributed.

The forex reserve that was $ 13.12 billion in the first week of January, came down to $ 12.63 billion after clearing import bills of Asian Clearing Union (ACU). It again rose within 17 days due to the positive inflow of remittance.

In Jul-Dec of 2012-13 fiscal, remittance increased 22 percent from last year. Within the same time, export revenue gained 7 percent and from Jul-Nov import costs decreased by 6.88 percent.

However, during Jul-Nov foreign aids increased by 107 percent. On Thursday, a Dollar was traded for Tk 79.30. In January last year, its price was almost Tk 85.

 

[eastwatch]

Over $800mln remittance in 18 days - bdnews24.com

Over $800mln remittance in 18 daysStaff Correspondent, bdnews24.com
Published: 2013-01-22 05:14:05.0 Updated: 2013-01-22 05:14:05.0

1 / 12012-08-12-11-08-05-dollars tm.jpg
Expatriates working abroad have sent in more than $ 800 million in remittance in the first 18 days of 2013, says a Bangladesh Bank statement. A Bank official says last year's trend in remittances seems to be continuing.

In 2012, Bangladesh received remittance of $ 14.2 billion – a record in the history of Bangladesh – exceeding expectations of the apex bank. This means expatriates have sent in almost $ 2 billion more or 16.3 percent higher remittance over the previous year.

Remittance increased by 10 percent in 2011 and by 2.5 percent in 2010. In 2012, October saw the highest inflow of remittance – over $ 1.45 billion – which is a record for being the highest remittance received in a a month.

The second highest was in December last year with over $ 1.28 billion received in remittances.
Bangladesh Bank Forex Reserve & Treasury Management's General Manager Kazi Saidur Rahman told bdnews24.com that the trend of remittance inflow in 2012 was likely to continue.

He said the forex reserve was now satisfactory as it stood at $ 12.7 billion even after clearing Asian Clearing Union (ACU) import bills worth $ 590 million. In the first week of 2013, forex reserve shot through $ 13 billion mark, beating all previous records of Bangladesh.

 

[idune]

Here is awami league regime $13 billion foreign currency reserve deception:

1) By buying $2.5 billion dollars from commercial bank and showing it reserve.

BB posts record in dollar purchase spree
AKM Zamir Uddin

Bangladesh Bank purchased a record $2.549 billion from the market between July 1 and January 23 of financial year 2012-13 with a view to curbing the depreciation of greenback against the local currency taka, said central bank officials.
According to the BB record, the central bank bought the highest amount of dollar in the first six months and 23 days of this financial year since FY 2004-2005.



BB posts record in dollar purchase spree

2) By taking contractionary monetary policy and by bank looting, Awami league forced drastic fall in capital machinay import. Thus decerasing dollar use and halting industrial growth.

Fall in import of capital machinery to hit GDP growth: economists
Staff Correspondent

A fall in the import of capital machinery and a slow growth in the industrial raw materials import will hamper the growth in the country’s gross domestic products, resulting in a stagnation of the overall industrialisation process, said economists.

Fall in import of capital machinery to hit GDP growth: economists

If one take out amount Bangladesh Bank purchased from commercial banks and amount stayed in reserve bacuse of decrease in capital machinary import, actul reserve would be about $8 billion. And $8 billion is NOT enough to meet 3 months import which is critical for economy.

 

[eastwatch]

A stupid knows nothing even about himself, now this guy has come up with a new economic theory. Whenever Bd does well in economy or in defence, it makes this wicked NATA to bark like dogs. A man with a tiny knowledge in economics should know that the BB, or any Central Bank, buys up dollars time to time from the market in order to keep the exchange rate in an acceptable zone.

Unless the BB buys, Taka will appreciate to become, say, $1=Tk75 or more. This will cause our export prices to go up that will result in less exports and also less remittance from abroad. Dollar has already appreciated to Tk.79.30. Moreover, why the commercial banks should hold dollars in themselves forever? They need Taka and not dollars that is not for daily transaction.

People, who did not enter a kidergarten should not teach others on economics. This guy is only busy with exposing lies and hoaxes of others, when he himself lies all the time and fabricates information to explain in his way. This stupid is a pathological lier, same as some Indians. Someone should test his bloodline.

 

[DURJOY]

if BB stop procuring $, value will decrease below tk70 which would be harmful for our exporter.in these circumstances ,not only BB,every stat bank bounds to procure $ from commercial bank to stabilize valu of local currency.

 

[Hammer-fist]

A stupid knows nothing even about himself, now this guy has come up with a new economic theory. Whenever Bd does well in economy or in defence, it makes this wicked NATA to bark like dogs. A man with a tiny knowledge in economics should know that the BB, or any Central Bank, buys up dollars time to time from the market in order to keep the exchange rate in an acceptable zone.

Unless the BB buys, Taka will appreciate to become, say, $1=Tk75 or more. This will cause our export prices to go up that will result in less exports and also less remittance from abroad. Dollar has already appreciated to Tk.79.30. Moreover, why the commercial banks should hold dollars in themselves forever? They need Taka and not dollars that is not for daily transaction.

People, who did not enter a kidergarten should not teach others on economics. This guy is only busy with exposing lies and hoaxes of others, when he himself lies all the time and fabricates information to explain in his way. This stupid is a pathological lier, same as some Indians. Someone should test his bloodline.

He is definitely very anti-Bangladeshi.

I have wondered where his hatred of Bangladesh came from (as he always works hard to belittle Bangladesh and make the country look bad). He might be an Indian or an Indian-origin Bihari.

 

[idune]

Unless the BB buys, Taka will appreciate to become, say, $1=Tk75 or more.

First Awami thugs like you flashing false reserve position but when that hoax got exposed and actual reseve is revealed, thugs has new excuse, now lets expose why taka appreciated to above $1=tk 80+.

Dollar was around tk75 level before Awami League looting using rental power plants started. Once Awami looting started (2011) dollars were sucked in from market and used for rental power plant oil import and exchange rate went up to tk 84-86. Otherwise, with Bangladesh export growth, remittance growth and fall of dollar value world wide, there is no reason for dollar appreciation in Bangladesh at such level. All these looting and dollar appreciation was done under cover of remittance and awami thugs branded it in "name of Bangladesh". This time its no difference.




Bangladesh Bank like any other institutions in Bangladesh is heavily politicized under Awami League regime and it is following Awami League regime destructive and looting policy rather than policy for welfare of the country. We have seen how thousands of crore taka had been looted from govt controlled banks by awami league looters and BB knowing these very well kept quite (FM already admitted that). That goes to show what BB has become since awami League regime in control.