DHAKA – Bangladesh is grappling with a greenback scarcity amid the continued world financial challenges, with its overseas alternate reserves dipping to $19.6 billion. The nation’s reserves, that are enough to cowl simply over three months of imports, have been beneath stress because of a mixture of rising import prices and a decline in exports and remittances. This case has been additional exacerbated by the financial fallout from the Russia-Ukraine battle, resulting in heightened costs for gasoline and meals.
The Central Financial institution of Bangladesh has tried a number of measures to mitigate the disaster, together with controlling imports, promoting {dollars} from its reserves, and imposing extra duties on imports. Regardless of these efforts, the reserves have continued to dwindle from pandemic-boosted ranges, with the Central Financial institution’s greenback gross sales since April failing to stem the deficit. Consequently, the value of {dollars} has surged from Tk 85 to Tk 107.50 for remittance transactions.
Former Financial institution Asia Managing Director Arfan Ali has cautioned towards investments that require heavy greenback spending, highlighting the urgency of preserving overseas alternate reserves. He identified that whereas Bangladesh maintains Worldwide Financial Fund (IMF)-approved reserves satisfactory for its rapid wants, misuse of loans from these reserves by exporters has led to issues over pressured loans.
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