PM’s decision on forex reserves utilisation before next budget: Finance Minister

Finance Minister AHM Mustafa Kamal has said that Prime Minister Sheikh Hasina will make her decision on utilising foreign exchange reserves even the next national budget.

“She’s now studying on the issue as how much of forex reserves would be required to be paid against our mega projects ... I think she’ll make her decision even before the next budget,” he told reporters after a meeting of the Cabinet Committee on Public Purchase on Thursday.

Referring to Prime Minister’s comments on the issue, the Finance Minister said that the forex reserves might be invested in the government-sponsored projects which will yield more profit.

“If we invest our forex in foreign banks, we don’t get more than 1 or 2 percent. But if we can invest in government-sponsored projects, our fund flow will continue and we’ll get more profit,” he said.

He mentioned the forex reserves have reached its targeted $42 billion before the celebration of 49th anniversary of our National Victory Day and it will continue to increase.

He said he hoped the foreign exchange reserves would reach $50 billion by 2030 or earlier if the global economy is not massively disrupted.

Mustafa Kamal mentioned that the country received 60 percent of its targeted forex in just five months from July to November.

He pointed out that the country has to make payment against different mega projects and recently $100 million was paid.

After such payment, net forex reserves now stood at $42 billion, he said.