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Bangladesh’s foreign exchange reserve hits historic high

  • Published at 01:26 pm August 4th, 2020
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Representational picture of foreign exchange Bigstock

According to data provided by the Bangladesh Bank, the country's foreign exchange reserve stood at $37.18 billion as of July 29, which was $35.85 billion in June this year

The country’s foreign exchange reserves reached $37.18 billion as of July 29, the highest ever in the country’s history.

According to data provided by the Bangladesh Bank, the country's foreign exchange reserve stood at $37.18 billion as of July 29, which was $35.85 billion in June this year.

On July 27, for the first time the foreign reserve exchange exceeded $37 billion mark, while the country inbound remittances also reached the highest peak of $2.6 billion in July.

On July 28, the Finance Ministry in a statement said that a surge in remittance inflow was the major reason behind the attainment of the $37.1 billion foreign exchange reserves as of July 27.

"Even though it is unbelievable, the upward trend of remittance inflow has continued amid the coronavirus pandemic,” it added.

Remittance inflow has played a vital role behind the surge in foreign exchange reserves, the release further stated, adding that the government’s initiative of issuing a 2% cash incentive against inward remittance had also played a vital role.

The country’s foreign exchange reserves increased by over $4 billion in June and July, and touched the $34 billion, $35 billion and $36 billion marks in June.

The previous highest reserve record was reached on September 5, 2017, with $33.68 billion.

In FY20, remittance earnings hit a record $18.21 billion, up by 10.88% or $1.79 billion from $16.52-billion in the previous fiscal year.

Bangladesh’s Foreign Exchange Reserve in 2020

Month

Forex Reserve in $ billion 

January

32.38

February

32.80

March

32.38

April

32.92

May

33.22

June

35.85

July

37.18

Source: Bangladesh Bank