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Bangladesh's gross foreign currency reserves stand at $25.82 billion after the country received loan funds from the International Monetary Fund (IMF) and Asian Development Bank (ADB).
But, as per the BPM6, the gross reserves stand at $20.4 billion, said Bangladesh Bank spokesman Executive Director Mejbaul Haque.
On Dec 7, Bangladesh's gross reserves, according to the BPM6, stood at $19.13 billion. However, the central bank's estimates put it at $24.66 billion.
Then, on Dec 15, the IMF released the second tranche of $682 million from its $4.7 billion loan deal while the ADB added another $400 million.
Bangladesh, under pressure from global headwinds, has taken many policy measures to bolster its economy. As part of those efforts, the Bangladesh Bank has provided dollar support to the market from its forex reserves, reports bdnews24.com.
This led to reserves dwindling over time. From August 2021, when reserves stood at an impressive $48 billion, it had fallen to $19 billion in November.
WARNINGS SENT TO ISLAMI BANKS
He also acknowledged writing to five Islami banks suffering from a liquidity crisis to adjust the balance of their current accounts with Bangladesh Bank.
"We sent them warnings, not decisions," he said.
The central bank had previously supported the ICB Islami Bank with Tk 7.0 billion, he said, adding the payment system department would decide to stop transactions with other banks if the banks did not adjust the deficit within 20 working days.
The Bangladesh Bank provides support to the banks with a negative balance in their current accounts, which is adjusted later, the executive director said. It is an ongoing process, he added.
"Deficit in current account is a structural problem of the banks," Haque said.
At the beginning of December, Bangladesh Bank wrote to Islami Bank Bangladesh PLC, Social Islami Bank, Al-Arafah Bank, First Security Islami Bank and Global Islami Bank on the issue.
It was recommended that the negative balance be adjusted within 20 working days.