Reserves now record US$ 16 bln

[BDforever]

Bangladesh’s forex reserves have reached a record US$ 16 billion, spurred by a double-digit growth in exports and low food imports, according to the central bank governor.

“You can attribute this remarkable feat to a combination of factors,” Governor Atiur Rahman told bdnews24.com.

“A slump in food imports thanks to high agricultural output, improvement in payment system and a double-digit export growth have all contributed,” he said in exclusive remarks to bdnews24.com.“This is enough to foot the import bill for five and a half months,” Atiur Rahman, whose four-and-a-half years in charge has seen the reserves treble.

The reserves reached US$ 16.03 billion to be precise, only second to India in South Asia.

The figure is six billion US dollars more than Pakistan’s, Atiur Rahman pointed out.

“The non-resident Bangladeshis are increasingly relying more on regular banking system to remit money,” he said.

The informal process – known as hundi – is no longer the preferred choice, leading to a bigger inflow into the central bank coffers, the governor said.

“We have done quite a bit to improve our payment systems,” Atiur Rahman said.

source: Reserves now record US$ 16 bln - bdnews24.com

 

[mb444]

Great to hear. If Hundi could be stopped the balances probably would double. Workers from middle east still relying on Hundi for most part as they get better rates.

 

[Mattrixx]

Means BD foreign reserve is 2nd among saarc countries now.

 

[BanglaBhoot]

Basically means that business in Bangladesh is at a stand still with no new investment ....

 

[BDforever]

Basically means that business in Bangladesh is at a stand still with no new investment ....

not entirely true, partially. no new investment is just one factor, decrease in gap between exports and imports, increase in remittance are also factors beside this.

 

[idune]

This is an artificially inflated reserve, $16 bilion is not actual figure.

1) more than $4 billion Bangladesh Bank bought from open market
BB buys record 4 billion US dollars

2) More than $1 billion came from loan private business brought in as loan from foreign banks as oppose to ocal bank. When repayment starts Bangladesh will see the impact
A glut in foreign currency loans « Dhaka Courier

3) Contractionary monetary policy pursued by Awami League caused severe decrease in capital machinary and industrial raw material import. Severly impacting GDP growth. Overall decerease more than $3 billion that was not spent on industrial growth and production are part of reserve now.

Import of factory raw materials, capital machinery drops
Import of factory raw materials, capital machinery drops

Discounting all these artificial propping by Awami League regime, reserver is actually well below $8 billion dollars. Given size of Bangladesh current economy that is not enough for even meeting needs for 3 months worth import, let alone loan repayments.

Look for Awami League digital deception, billboard near you.

 

[BDforever]

This is an artificially inflated reserve, $16 bilion is not actual figure.

1) more than $4 billion Bangladesh Bank bought from open market
BB buys record 4 billion US dollars

2) More than $1 billion came from loan private business brought in as loan from foreign banks as oppose to ocal bank. When repayment starts Bangladesh will see the impact
A glut in foreign currency loans « Dhaka Courier

3) Contractionary monetary policy pursued by Awami League caused severe decrease in capital machinary and industrial raw material import. Severly impacting GDP growth. Overall decerease more than $3 billion that was not spent on industrial growth and production are part of reserve now.

Import of factory raw materials, capital machinery drops
Import of factory raw materials, capital machinery drops

Discounting all these artificial propping by Awami League regime, reserver is actually well below $8 billion dollars. Given size of Bangladesh current economy that is not enough for even meeting needs for 3 months worth import, let alone loan repayments.

Look for Awami League digital deception, billboard near you.

only one question for you, do you understand economics ?

 

[farhan_9909]

Congrats

but Both Pakistan and india needs reserves of atleast 50billion dollars.so that we can finance almost everything on our own

 

[idune]

only one question for you, do you understand economics ?

You need to ask that question to yourself, because you sure did not get information that being posted.

 

[BDforever]

You need to ask that question to yourself, because you sure did not get information that being posted.

ahahaha i know what i am talking about

 

[idune]

ahahaha i know what i am talking about

Then provide your argument how these artificially propping up measures should not be discounted.

 

[Dillinger]

Congrats

but Both Pakistan and india needs reserves of atleast 50billion dollars.so that we can finance almost everything on our own

Ummm. India already has Forex reserves amounting to 270 billion dollars.

But yes we need more, we need it to be in the trillions.

 

[Iggy]

Great to hear. If Hundi could be stopped the balances probably would double. Workers from middle east still relying on Hundi for most part as they get better rates.

Hundi is the main source for VOIP business in India, Pakistan and Bangladesh.. They depend Hundi a lot for the transaction of money.. I used to work for a VOIP company so I know .. Its not easy to stop Hundi business.. It also gives lot of people jobs.

 

[Dillinger]

@BDforever Perhaps you can start by teaching people that ALL countries purchase currency to prop up their Forex reserves, its not an "artificial measure".

 

[acid rain]

Pakistan's Forex reserves have gone down to 5billion - are they still third?