Forex reserve crosses $43b
The country's forex reserves yesterday hit a fresh record of $43.17 billion thanks to the upward style of remittance and lower import payments, Bangladesh Bank data showed.
The reserves, among the significant macroeconomic indicators of an economy, touched the $41 billion tag on October 28 and rose to $42 billion on December 15.
The reserves stood at $32.68 billion in December last year. This means Bangladesh's foreign exchange has increased more than $2.1 billion this month.
Between July and November, remittance income rose to $10.90 billion, up 41.32 per cent year-on-year. The rally of remittances in addition has kept its rate this month, producing a large contribution to the forex reserve.
Remittance stood at $1.91 billion in the first 29 days of December in contrast to $1.59 billion in the same period this past year.
"This is surely an excellent news for Bangladesh before the start of a fresh year," Financing Minister AHM Mustafa Kamal said found in a statement released by his ministry yesterday.
That is another milestone, which portrays the economic stability of Bangladesh, he said.
Remittance has played a good vital role found in boosting the forex reserves amid the ongoing coronavirus pandemic, the minister said.
"I would like to express my gratitude towards the expatriates, who worked hard and helped the federal government achieve the milestone under the strong leadership of Primary Minister Sheikh Hasina.
Remittance has been on the rise riding on the stagnation of the global 'hundi' cartel, an illegal cross-border financial transaction.
The hundi cartel has been rendered ineffective around the world as a result of restrictions on movement imposed by countries to limit the spread of the coronavirus.
But the reduction in imports in addition has helped to press the reserve in new periods.
Imports declined by 8.84 % to $20.24 billion at the same time when exports grew by 0.86 % to $15.52 billion.
The three indicators -- remittance, imports and exports -- have elevated the reserves to record highs following a outbreak.
