Sunday, 19 September, 2021

Healthy forex reserves helping implement mega projects: Dr Atiur

Forex reserves hit $48bn

  • Staff Correspondent
  • 2 September, 2021 12:00 AM
  • Print news
Healthy forex reserves helping implement mega projects: Dr Atiur

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Bangladesh’s forex reserves have reached $48.09 billion as of Wednesday thanks to inward remittance and foreign aids.

But experts have said Bangladesh’s prudent macro-economic policy being in place since 2009 has helped it vastly increase the forex reserves.

Dr Atiur Rahman, former governor of Bangladesh Bank (BB), said the government followed a policy to develop real economy sectors like agriculture production, SMEs and export, that resulted in the healthy forex reserves.

Citing an example, he said if Bangladesh expends $2 billion to import rice and other food items that would affect the reserve figure, but the country is sufficient in food production that also contributed to reserve growth indirectly.

Bangladesh remains in a financially suitable position due to the healthy reserves amid the pandemic situation, which is helping implement mega projects like the Padma Bridge, Dr Atiur said.  “In the global arena Bangladesh reached a financially credible position as our overall debt is around 35 percent of GDP while it is over 80 percent of GDP in India. Similarly we are in a good position in foreign debt position as our foreign debt is around 13 percent of GDP while it is around 21 percent in India,” he said.

Dr Aitur said Bangladesh’s export grew up 15 percent; remittance grew up 36 percent in FY 21 amid the pandemic which helped the country lend Sri Lanka from the reserve.

He said the forex reserves will make new record in every month if the export diversification programmes are implemented.  According to Bangladesh Bank data released on Wednesday, the expatriates have sent inward remittance of $1.81 billion remittance in August (1 to 31). The International Monetary Fund (IMF) has approved US$ 732 million emergency assistance for Bangladesh to help the country address the challenges posed by Covid-19.

The country’s forex reserves touched the new high depending on inward remittance and foreign aids amid the pandemic.