Reserves crisis will not be resolved overnight: New BB governor

Bangladesh Bank's newly appointed governor Dr Ahsan H Mansur has acknowledged the country's foreign exchange reserves crunch, cautioning that the situation will not improve overnight.

However, he assured that the central bank will not drastically cut down on dollar supply to the market.

In a press briefing at the secretariat on Wednesday, following a meeting on inflation and food supply, Dr Mansur said, "The reserves crisis is a reality, and it won't be resolved overnight. We need to assess our position and determine the optimal level of supply to the market while maintaining adequate reserves."

The governor emphasised the importance of maintaining market confidence and avoiding an abrupt reduction in dollar supply. He highlighted the need to balance the demand for imports and payments with the available reserves.

Dr Mansur further revealed plans to engage with development partners to explore avenues for increasing the country's foreign exchange reserves. He expressed optimism about the situation, stating, "We will tread carefully but move forward. I hope we will start seeing results within a few months."

The governor's comments come amidst growing concerns over Bangladesh's dwindling foreign exchange reserves, which have been impacted by factors such as rising import costs, higher debt servicing and a global economic slowdown.