Reserves have increased in the span of two weeks

Despite the drop in export earnings, dollar inflows to banks have increased due to record remittances sent by expatriates on the occasion of the upcoming Eid al-Adha. Meanwhile, the cost of imports has also decreased. As a result, Bangladesh Bank is buying the excess flow of dollars in commercial banks. Due to this, the foreign exchange reserves in the central bank increased by 490 million dollars in the last two weeks.

This information was obtained from the Central Bank's report released on Thursday. The report shows that expatriates are sending remittances in large amounts to meet the additional expenses of their relatives in the country during the upcoming Eid al-Adha. Remittance flow increased by 33.23 percent in May last month. In that month, expatriates sent maximum remittances of 225 million 39 million dollars. Which is the highest in a month.

Meanwhile, the export income decreased by 16.06 percent in that month. Import cost also decreased by 15.57 percent. A balance has been brought about in the cost of the dollar as export earnings and import costs fall. The amount of remittance remains outstanding. Due to which the flow of dollars in banks has increased. For this reason, the central bank bought dollars from commercial banks. On the contrary, it has provided cash to the banks. Banks need extra money to meet the needs of customers during Eid. He settled the demand by selling dollars and taking bank money. Reserves increased due to dollar purchases.

The report also shows that gross reserves at the beginning of May were $2,421 million. Last Thursday at the beginning of the day it increased to 2 thousand 452 million dollars. Reserves increased by 300 million dollars during the period under discussion. At the beginning of May, the net reserves were 1 thousand 872 million dollars. Last Thursday it increased to 1 thousand 921 million dollars. Reserves increased by 49 million dollars during the period under discussion. Investments in various funds are returned from the gross reserves, adding to the net reserves. Due to this the net reserve is increasing.

Meanwhile, at the end of this month, the third tranche of the IMF loan may be available for $115 million. If you get this money, the reserve will increase.

Bandhan/Ciecha/Saa