Forex reserve rises 4.41 times in last 10 year

Bangladesh’s foreign exchange reserve increased 4.41 times in the last 10 years from fiscal 2008-09 to 2017-18 riding on the steady garment exports and inflow of remittances.

According to the Bangladesh Bank (BB) data, foreign exchange reserve stood at US$32.94 billion in fiscal 2017-18 which was $7.47 billion in fiscal 2008-09.

“Increasing remittances sent by expatriates abroad and rising export incomes have boosted Bangladesh’s reserves,” Bangladesh Bank Chief Spokesperson M Serajul Islam told BSS.

As per the BB’s major monthly economic indicator of August, the gross foreign exchange reserve of BB stood at $32.93 billion and the current foreign exchange reserve is equivalent to import liability of 6.41 months.

The BB data also shows that the growth of the foreign exchange reserve was upward from the fiscal 2008-09. But in 2017-18, the growth had slightly dropped due to declining trend of remittance.

The reserve was $33.49 billion in the fiscal 2016-17, $30.17 billion in 2015-16, $25.03 billion in 2014-15, $21.56 billion in 2013-14, $15.32 billion in 2012-13, 10.36 billion in 2011-12, $10.91 billion in 2010-11 and 10.75 billion in 2009-10.

During the last 10 years, the remittance flow into the country has increased 3.56 times, which can be viewed as a milestone on the way of upgrading Bangladesh as a developed country.

Bangladeshi expatriates sent $131.86 billion from fiscal 2008-09 to 2017-18, which was $94.82 billion higher than that of the total amount of previous 10 years.

Non-Resident Bangladeshis (NRBs) sent around $37.04 billion from the fiscal 1998-99 to fiscal 2007-08.

BB Deputy Governor Abu Hena Mohammad Razee Hassan said due to different steps taken by the government and the central bank, the inflow of remittance in the last couple of years showed an upward trend.

Moreover, he said, the number of Bangladeshi expatriates has been gradually increasing as the government has taken various steps to send skilled workers abroad.

He said the process of sending money into the country has become easier than before as the central bank and the government have provided all sorts of policy supports to the banks and exchange houses for giving smooth services to the remittance senders.

In fiscal 2017-18, export earning was US$ 40.94 billion against the target of $41 billion. The growth in goods export was 6.36 percent while 7.43 percent in service sector. The overall export growth was 6.47 percent.