Central bank reserves fall below $20b

Bangladesh's foreign exchange reserves fell below USD20 billion by the end of January, the latest central bank data showed.

Bangladesh Bank (BB) data showed the country's foreign exchange reserves stood at $19.94 billion on Jan. 31, according to the International Monetary Fund calculation method, compared with $17.20 billion on Dec. 31.

BB said the gross reserve was $25.09 billion by the end of January.

The reserve calculated under the IMF's balance of payments and investment position manual method is immediately usable, while the gross reserve is also usable subject to the realisation of investment.

For a growing economy like Bangladesh, forex reserves equivalent to six months' import bills are considered adequate.

With the existing reserves, however, central bank officials said Bangladesh is in a position to pay about four months' import bills.

Bangladesh's gross foreign exchange reserves hit an all-time high of $48 billion in August 2021.

In a bid to boost shrinking forex reserves, the central bank has taken various measures, including relaxed rules, to woo more remittances from millions of Bangladeshi people living and working abroad in recent years.