The new record in the country's foreign exchange reserves is $46.04 billion

[fallstuff]

The new record in the country's foreign exchange reserves is $46.04 billion

Google Translate.
Star Online reports
Tuesday, August 24, 2021 09:11 PM

In the wake of the coronavirus epidemic, the country's foreign exchange reserves have reached a new record of ৮ 48.04 billion. So far, the country's foreign exchange reserves are the highest.
A senior official of Bangladesh Bank told The Daily Star on Tuesday .
Earlier, the highest record for this foreign exchange reserve was $46 billion.
Announcing the monetary policy for the current financial year on July 29, Bangladesh Bank Governor Fazle Kabir projected in his written statement that the foreign exchange reserves would increase to $52 billion in the current financial year even if the economic recovery is hampered by various regulatory restrictions including corona infection.

দেশে বৈদেশিক মুদ্রা রিজার্ভে নতুন রেকর্ড ৪৮.০৪ বিলিয়ন ডলার

করোনাভাইরাস মহামারির মধ্যেই দেশের বৈদেশিক মুদ্রার রিজার্ভ ৪৮ দশমিক ০৪ বিলিয়ন মার্কিন ডলারের নতুন রেকর্ড ছুঁয়েছে। এ পর্যন্ত দেশের বৈদেশিক মুদ্রার রিজার্ভ এটাই সর্বোচ্চ।

www.thedailystar.net

 

[DalalErMaNodi]

The new record in the country's foreign exchange reserves is $46.04 billion

Google Translate.
Star Online reports
Tuesday, August 24, 2021 09:11 PM

In the wake of the coronavirus epidemic, the country's foreign exchange reserves have reached a new record of ৮ 48.04 billion. So far, the country's foreign exchange reserves are the highest.
A senior official of Bangladesh Bank told The Daily Star on Tuesday .
Earlier, the highest record for this foreign exchange reserve was $46 billion.
Announcing the monetary policy for the current financial year on July 29, Bangladesh Bank Governor Fazle Kabir projected in his written statement that the foreign exchange reserves would increase to $52 billion in the current financial year even if the economic recovery is hampered by various regulatory restrictions including corona infection.

দেশে বৈদেশিক মুদ্রা রিজার্ভে নতুন রেকর্ড ৪৮.০৪ বিলিয়ন ডলার

করোনাভাইরাস মহামারির মধ্যেই দেশের বৈদেশিক মুদ্রার রিজার্ভ ৪৮ দশমিক ০৪ বিলিয়ন মার্কিন ডলারের নতুন রেকর্ড ছুঁয়েছে। এ পর্যন্ত দেশের বৈদেশিক মুদ্রার রিজার্ভ এটাই সর্বোচ্চ।

www.thedailystar.net

Fix the title.. it's actually at 48+ billion USD.. .

Forex reserves cross record $48 billion mark

The country's foreign exchange reserves witnessed a new record crossing the $48 billion mark following the $1.45 billion financial assistance from the International Monetary Fund (IMF). In addition to remittances sent by expatriates, the IMF aid mainly contributed to the surge in forex reserves...

www.tbsnews.net

 

[mb444]

$50b will be a significant milestone and will immediately trigger an uplift of BDs sovereign rating.

 

[s.k]

Go fast or Pakistan will beat you, we are at 27B.

 

[fallstuff]

Fix the title.. it's actually at 48+ billion USD.. .

Forex reserves cross record $48 billion mark

The country's foreign exchange reserves witnessed a new record crossing the $48 billion mark following the $1.45 billion financial assistance from the International Monetary Fund (IMF). In addition to remittances sent by expatriates, the IMF aid mainly contributed to the surge in forex reserves...

www.tbsnews.net

Damn, it is getting bigger like the blob !

 

[Great Janjua]

Ah shite went into 1971 pre mode for while thought East Pakistan is on the rise then my senses were knocked back into place by a rogue mosquito there I see the Name Bangladesh.

 

[F-6 enthusiast]

$50b will be a significant milestone and will immediately trigger an uplift of BDs sovereign rating.

is that like a credit score ? meaning BD can take bigger loans at lower interest rates?

 

[mb444]

is that like a credit score ? meaning BD can take bigger loans at lower interest rates?

Yes its the BDs credit rating that determins rate at which BD can borrow money. With $50bn reserves BD does not need to borrow as such but nevertheless it gets us up the rating. It will also assist BD companies get cheaper international loans.

See the following link..... the best thing to look at is the TE number.... the highest you can have is 100. BD is currently at 40 similar to Vietnam at 42, but we need to be aiming for indonesia type rating of 60.... higher reserves will get us up the ladder.

https://tradingeconomics.com/bangladesh/rating



BD needs to get its rating up to 50 to be considered investment grade. At that point BD can release government bond that international institution will want to invest in. At the moment BD stocks are not open for international trading. This is one of the reason, the market is not sure that BD govt can step into stabalise should there be a run in the market by borrowing. GoB is also not sure so they have shielded BD stocks from potential international speculative traders by heavy regulation as to who can trade.

 

[Chhatrapati]

is that like a credit score ? meaning BD can take bigger loans at lower interest rates?

To put it simply yes. It is like credit score but having large forex don't boost your sovereign ratings. For that, you need to have higher income per capita, low inflation, higher GDP growth, external debt repayment history and good fiscal numbers.

 

[UKBengali]

To put it simply yes. It is like credit score but having large forex don't boost your sovereign ratings. For that, you need to have higher income per capita, low inflation, higher GDP growth, external debt repayment history and good fiscal numbers.

You can argue that having high forex reserves increases confidence in a country by foreign investors. Confidence is a key criteria in how a sovereign credit rating is worked out.

While it is not an explicit criteria it can only potentially help and not hinder a country's credit rating.

 

[bluesky]

Go fast or Pakistan will beat you, we are at 27B.

It is good to see Pakistan is improving its economy.

 

[Chhatrapati]

You can argue that having high forex reserves increases confidence in a country by foreign investors. Confidence is a key criteria in how a sovereign credit rating is worked out.

While it is not an explicit criteria it can only potentially help and not hinder a country's credit rating.

Technically yeah, but that's a big stretch. And the amount investors would likely invest will still be limited. What you say is true for countries like China with a large forex and investors are likely to bet billions because they can get their investment back without causing fluctuations in the currency. For that you need to build your reserves even more.

 

[Bilal9]

Wow another hindutva turd with flat earther level of ignorance.

Dumb motherF**ker, let me break it down for you. A sovereign rating is officially published by a rating house on request of a country. It is quoted when bonds and gilts are issued.

Beyond that there is a fuild sovereign credit rating that is maintained by financial institutions and this is what determines daily trades.

As for the reserves you are also inaccurate. BDs reserves are almost all BDs own, they come through remittances from BD diaspora where hard currency is exchanged for Taka. BoB reduces MO (in taka and sometimes also buying $) to manage MB. Apart for validated companies it is not legal for institutions or individuals in BD to maintain hard currency accounts. BD reserves are growing due to remittances received as well as trade

Dont come here with 2 second google search knowledge and string together words that you have no concept of. Stick to bharat rat shack forum street shiter.

These guys feel so good at their Googling skills that they spread misinformation confidently.

India has Internet, so Bangladesh can't have it - right?

Schmucks don't realize ours was always an open economy, unlike license Raj India. We got Television and even Color Television way before Indians had basic third-rate Doordarshan TV for two hours a day. We had analog cellphones in the 70's before anyone in India knew what a cellphone was. No one in Bangladesh even compares Bangladesh with India anymore.

The parents of these trolls were still waiting their turn on a lottery waiting three years to take delivery of their $hitty Ambys and Padmini, readying Ganda Phool for the auspicious day. Still doing it for 800cc tinpot deathtraps made with tinfoil.

Now all is forgotten because India has a few Backoffice jobs and glass buildings in Gurugram. India Amrika ban gaya (at $2000 dollars GDP per head). Desh agey bar raha hai. "X" abhijaan aur "Y" abhijaan. Easy to do it - putting blinders on and inserting head in the sand.

Modi ruined India. You will find out more as time goes on....

 

[PoondolotoPandalum]

Hopefully, it'll cross the $50 billion milestones in a few months.

I think they aim to have somewhere around $150 billion USD within this decade. Though someone told me having too much foreign reserve, as a percentage of your GDP, isn't always a good thing. In fact, it could highlight underlying problems. Not being an economist, I can't really say what those are, happy to be corrected.

Overall, some encouraging signs. Though overall macro-economic indicators will surely fall behind prior targets, due to the poor handling of the 3rd covid wave, which we still haven't fully recovered from. Hopefully, we can spring back to action from 2022, and go back to late 2010s growth rates.

 

[salute]

Wow another hindutva turd with flat earther level of ignorance.

Dumb motherF**ker, let me break it down for you. A sovereign rating is officially published by a rating house on request of a country. It is quoted when bonds and gilts are issued.

Beyond that there is a fuild sovereign credit rating that is maintained by financial institutions and this is what determines daily trades.

As for the reserves you are also inaccurate. BDs reserves are almost all BDs own, they come through remittances from BD diaspora where hard currency is exchanged for Taka. BoB reduces MO (in taka and sometimes also buying $) to manage MB. Apart for validated companies it is not legal for institutions or individuals in BD to maintain hard currency accounts. BD reserves are growing due to remittances received as well as trade

Dont come here with 2 second google search knowledge and string together words that you have no concept of. Stick to bharat rat shack forum street shiter.

Using expletives to show your ignorance. I know you are from the peanut brain land, so I'll just leave you to your vices. You run a current account deficit, you moron. Remittances are already accounted for.


"India’s sovereign credit rating of BBB- then boils down to the following: The Indian government’s probability of default, reflecting both its ability and willingness to repay its debt obligations, is very high. International investors then would be advised to beware of lending to India. This, however, seems completely incongruous with facts pertaining to both our ability and willingness to pay. In order to repay debts denominated in dollars, a country needs to possess both the ability and willingness to repay.

The country’s foreign reserves determine its ability to pay. India’s foreign exchange reserves, as of 15 January 2021, were at $584.24 billion compared to its total external debt, including that of the private sector, at $556.2 billion. Its reserves to debt ratio, which was at 78.4% in 2016-17, rose to 85% in 2019-2020, and appears to have further risen to 105% in 2021. The short-term debt owed by the private sector as a proportion of total forex reserves was 19.1% in September 2020. Further, our forex reserves were sufficient to cover 12 months of imports in 2020, as opposed to 11.1 months in 2016. Clearly, India has done reasonably well in terms of its external sector vulnerability, despite a pandemic.

With regard to willingness to pay, clearly, that India has not had a zero sovereign default history attests to the fact that the probability of default is extremely low. In November 2019, Standard & Poor’s cited low per capita GDP and relatively high fiscal deficit as the reasons why India would not be granted a ratings upgrade for some ‘considerable period’. "

On both counts, you are even worse than India.