Swelling import bills, coupled with routine fee to the Asian Clearing Union (ACU), have put the nation’s foreign-exchange (foreign exchange) reserves below stress once more, officers mentioned.
The reserve fell under US$44.50 billion on Wednesday after making a routine fee to the ACU in opposition to the imports of the November-December interval of final calendar 12 months (2021).
After the fee, the nation’s foreign exchange reserve got here right down to $44.33 billion on the day from $46.29 billion of the earlier working day, in response to the central financial institution’s newest statistics.
On November 04 final 12 months, Bangladesh’s foreign exchange reserve got here right down to $44.87 billion from $46.47 billion of the earlier working day on the identical floor.
The foreign exchange reserve has been sustaining a falling pattern within the final couple of months following greater import fee obligations together with decrease circulation of inward remittances, they defined.
Bangladesh’s precise import when it comes to settlement of letters of credit score (LCs) jumped by 53.74 per cent to $30.32 billion through the July-November interval of the present fiscal 12 months (FY), 2021-22, from $19.72 billion in the identical interval of the earlier fiscal 12 months.
Nevertheless, opening of LCs, commonly known as import orders, rose by greater than 53 per cent to $35.43 billion through the interval below evaluation, from $23.12 billion in the identical interval of FY 21.
Larger costs of important commodities, together with petroleum merchandise, within the international market have pushed up the nation’s import funds through the interval, the officers defined.
In addition to, imports from the ACU member nations, significantly from India, elevated by almost 19 per cent to $1.93 billion within the final two months of 2021 from the earlier $1.63 billion.
Bangladesh is importing totally different shopper objects, cotton, uncooked supplies and capital equipment from the ACU member nations, primarily from India, they added.
“Intermediate items are additionally imported from the ACU member nations,” a BB senior official informed the FE whereas replying to a question.
Below the present provisions, excellent import payments and pursuits thereof are to be paid on the finish of each two months among the many member nations.
The ACU is an association involving Bangladesh, Bhutan, India, Iran, Myanmar, Nepal, Pakistan, Sri Lanka and the Maldives, by means of which intra-regional transactions among the many taking part central banks are settled on a multilateral foundation.
However, the circulation of inward remittance dropped by greater than 20 per cent to $10.24 billion through the July-December interval of FY 22 from $12.94 billion in the identical interval of FY 21.
The BB officers additionally mentioned the foreign exchange reserve is now barely going through a stress – primarily attributable to greater import fee obligations, significantly for petroleum merchandise, intermediate items and industrial uncooked supplies.
The central financial institution has to date bought almost $2.50 billion from the reserve on to the industrial banks as liquidity help for settling their import fee obligations in FY 22.
“It is a momentary phenomenon,” mentioned one other BB senior official, including that the stress on foreign exchange market has began easing to some extent from December.
The central banker hoped that the foreign exchange reserve state of affairs would enhance within the first quarter (Q1) of 2022.
Bangladesh’s foreign exchange reserve rose to $48.04 billion on August 24 final 12 months, setting a brand new document, from $46.58 billion of the earlier working day – after receiving $1.45 billion from the Worldwide Financial Fund (IMF) as normal allocation of Particular Drawing Proper (SDR).