Reserve crosses $27bn

[BDforever]

Foreign exchange reserve crossed $27 billion, reaching a new high at $27.05 billion on Thursday, AFM Asaduzzaman, general manager of governor secretariat of Bangladesh Bank (BB) told BSS.

Earlier on August 17 the foreign exchange reserve crossed $26 billion mark for the first time in the country's history. The current reserve in Bangladesh is the second highest among the countries in the SAARC region, according to the latest data of Bangladesh Bank (BB).

The reserve soared further because of the higher inflow of remittance in the past two months, with expatriate Bangladeshis sending more money home for Eid-ul Azha, a BB official said.

Besides the rising trend in remittance, the steady export growth and the fall in import cost also contributed to the historical high reserve position, which is well enough to meet the country's seven months' import requirements, the official said.

BB recent data also showed that the export rose by nearly 28.0 percent to $2.75 billion in August when import was in down trend after showing over 3.0 per cent fall in July.

source: Reserve crosses $27bn | 24 News | The financial express

 

[mb444]

Good going but clearly not enough. If we look at countries like Vietnam we are long way behind. We should seek to strive harder. BD should also seek to use the reserves and buy oil futures as the price of oil is currently low.

 

[BDforever]

Good going but clearly not enough. If we look at countries like Vietnam we are long way behind. We should seek to strive harder. BD should also seek to use the reserves and buy oil futures as the price of oil is currently low.

 

[farhan_9909]

is it possible to fund your own mega projects with these reserves?

 

[extra terrestrial]

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That's not the exact picture... Vietnam's manufacturing and industrial base is quite stronger than us, they have already moved on to heavy engineering and hi-tech industries while we are still stuck in RMG and textiles.

 

[BDforever]

That's not the exact picture... Vietnam's manufacturing and industrial base is quite stronger than us, they have already moved on to heavy engineering and hi-tech industries while we are still stuck in RMG and textiles.

thats true

 

[extra terrestrial]

is it possible to fund your own mega projects with these reserves?

Possible but not much as it may take toll on the inflation. Still, govt. is planning to invest some on infrastructure from the reseves...

Bangladesh central bank plans $2-bln funding for infrastructure| Reuters

Besides, Padma biridge, a project worth $3 billion is being implemented through govt.'s own fund...

 

[mb444]

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You are correct in pointing out that our overall GDP will surpass Vietnam . But we have a larger population as such a bigger country. BD and Vietnam started in the position several decades ago but they have progressed more than us. Infact if you go back a few decades Malaysia was in the same development point as us.

Off course BD faced multiplicity of challenges which explains our current position.

It is often the case that China vs Vietnam and India vs Bangladesh and Vietnam vs Bangladesh is compared as a test case of economic management and strategy.

Vietnam had started broadly at the same level as us but has surpassed us economically if that is to be measured as GDP per person.

Vietnams current reserves is $37bn and my comment related solely to that.


For more information Google a paper by IGC,
It's called paths to development, is there a Bangladesh Surprise? It explains very well something that is fairly unique. BD is developing much more uniformly across all demographic sectors than is the case in other developing countries and as such traditional methodology may not be correct in judging BD.

 

[jaunty]

Bangladeshis need to elect Hasina ji for a couple of more terms. She is doing a great job and taking Bangladesh to new heights.

 

[mb444]

is it possible to fund your own mega projects with these reserves?

Reserves are really not for the government to use as it likes.

Where does BD gets it reserves from , our exports and remitence. When a £ comes in BB issues out equivalent amount of taka in return and hold the £.

Reserves are simply BB holding money in foreign currency as opposed to taka. It can not be siphoned off for anything by the government for infrastructure, military , etc without causing massive fiscal damage.

What it can do is to convert the currency into another easily convertable asset in this case oil futures. BD buys loads of oil, it is certain we will continue to be buying for the foreseeable future. Locking in future purchases of oil whilst the price is low is a no brainier. If the reserves are used to buy oil futures what it means is that BD can offset the higher oil prices in future and cushion the economy.

 

[BDforever]

is it possible to fund your own mega projects with these reserves?

not with reserve but Bangladesh is funding Padma Bridge mega project by own

 

[Rajaraja Chola]

Have BD overtaken Pakistan in Foreign Reserves? Great job. Inspite of all the negative comments about Awami League by BD members, they are doing a great job economically.
Congrats BD

 

[Nilgiri]

Have BD overtaken Pakistan in Foreign Reserves?

Long time ago. They are quite quickly approaching double of Pakistans forex since Pakistan has stagnated to a large degree.

Great job. Inspite of all the negative comments about Awami League by BD members, they are doing a great job economically.
Congrats BD

More to do with the inherent economic fundamentals of Bangladesh....but Hasina is not making many bad decisions, and making lots of reasonable ones.....though time will tell I guess.

 

[Maira La]

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But that's just raw GDP. Suckks that they are catching up to us with far less population.

 

[Nilgiri]

But that's just raw GDP. Suckks that they are catching up to us with far less population.

Its even more crazy when you look how far behind you they were in 1990 (1/3rd per capita of B'desh). By 2000 they had caught up in per capita and then exceeded you. They were even a larger nominal economy in the years 2008, and 2011 - 2014...and are still growing at relatively the same pace.

Now B'desh is 58% per capita of Vietnam in nominal terms and 60% in PPP terms (indicating similar price levels in both countries)....expected to increase to 62% each by 2020 (because of the similar growth rate expected in Vietnam - even though its at a higher per capita base).

B'desh can sure learn a lot from Vietnam for sure.

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