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Forex reserves hit record $19 billion-mark
Staff Correspondent, bdnews24.com
Published: 2014-02-19 19:00:53.0 BdST Updated: 2014-02-19 19:00:53.0 BdST
The country’s foreign exchange reserves set a new record on Wednesday crossing the US$ 19 billion-mark for the first time, thanks to a robust growth of export earnings and inflow of remittances and decline in imports, Bangladesh Bank’s data revealed
Bangladesh’s foreign exchange reserves are now double in comparison to Pakistan’s.
Quazi Saidur Rahman, General Manager of the central bank’s Forex Reserve and Treasury Management Division told bdnews24.com that the country would be able to pay more than seven months’ import bills with the existing reserve, which would also help in keeping the country’s foreign exchange market stable.
“We hope that the reserve will remain above $19 billion after the government pays the import bills to the Asian Clearing Union (ACU) in the first week of March,” he said.
The central bank’s foreign currency reserves crossed the US$ 10 billion-mark for the first time on December 10, 2009. It further stood at US$ 15 billion on May 7 last year and US$ 18 billion on December 19 the same year.
After India, Bangladesh has the second-highest foreign exchange reserves among the SAARC countries.
India's foreign exchange reserves stand at over US$ 275 billion while Pakistan’s at about US$ 10 billion.
According to the central bank data, Bangladesh received US$ 1.25 billion as inward remittances in January 2014 – which is the highest monthly inflow of remittance in the 2013-2014 fiscal.
The expatriate Bangladeshis remitted US$ 650 million in the first 14 days of February.
In view of the first seven months (July-January) of the current fiscal, the inward remittance to the country has dropped by eight percent over the same period of the previous fiscal.
However, the export earnings have increased by about 15 percent over the same period.
As per the international standards, a country must have the enough foreign currency reserves to settle at least three months’ import bills.
source: Forex reserves hit record $19 billion-mark -
bdnews24.com
1. Forex = Foreign Exchange.
It means all the foreign currency that the government has e.g. Dollars, Euros, Riyals, Afghanis but of course usually the US dollar as that is the main currency in the world even now unfortunately.
2. According to the article Bangladesh's forex reserve was $15 billion 9 months ago and now it has shot up to $19 billion.
That is an increase of $4 billion in 9 months or around 30% increase approximately.
$19 billion in international terms however is a small amount and nothing to be too impressed with, however BD (Bangladesh) is going in the right direction.
3. India, with its massive, population has the biggest forex reserve in the SAARC region.
Followed by Bangladesh.
Next is Pakistan, then Sri Lanka. Afghanistan apparently has $6 billion from what I've found online.
SAARC.
The Bangladeshi economy is growing and on the right track but it is still way, way behind Indonesia and Malaysia and will take decades to catch up to them. Bangladesh used to be ahead of Malaysia and Indonesia a few decades ago.
Afghanistan, despite the war, is more advanced than Pakistan in some ways e.g. Afghanistan has 3G mobile services, Pakistan doesn't. If Afghanistan can establish permanent stability and defeat terrorism it can progress economically especially considering the possible TAPI deal.
TAPI pipeline deal.
3G in Afghanistan.
Pakistan, which has been accused by others in South Asia of sponsoring terrorism in India, Bangladesh and Afghanistan, is suffering from economic problems and insurgencies and the federation of Pakistan may once again splinter as it did in 1971.
If Pakistan disintegrates South Asia will probably be a more stable region and the independent states of Balochistan and Sindh will prosper economically.
Staff Correspondent, bdnews24.com
Published: 2014-02-19 19:00:53.0 BdST Updated: 2014-02-19 19:00:53.0 BdST
The country’s foreign exchange reserves set a new record on Wednesday crossing the US$ 19 billion-mark for the first time, thanks to a robust growth of export earnings and inflow of remittances and decline in imports, Bangladesh Bank’s data revealed
Bangladesh’s foreign exchange reserves are now double in comparison to Pakistan’s.
Quazi Saidur Rahman, General Manager of the central bank’s Forex Reserve and Treasury Management Division told bdnews24.com that the country would be able to pay more than seven months’ import bills with the existing reserve, which would also help in keeping the country’s foreign exchange market stable.
“We hope that the reserve will remain above $19 billion after the government pays the import bills to the Asian Clearing Union (ACU) in the first week of March,” he said.
The central bank’s foreign currency reserves crossed the US$ 10 billion-mark for the first time on December 10, 2009. It further stood at US$ 15 billion on May 7 last year and US$ 18 billion on December 19 the same year.
After India, Bangladesh has the second-highest foreign exchange reserves among the SAARC countries.
India's foreign exchange reserves stand at over US$ 275 billion while Pakistan’s at about US$ 10 billion.
According to the central bank data, Bangladesh received US$ 1.25 billion as inward remittances in January 2014 – which is the highest monthly inflow of remittance in the 2013-2014 fiscal.
The expatriate Bangladeshis remitted US$ 650 million in the first 14 days of February.
In view of the first seven months (July-January) of the current fiscal, the inward remittance to the country has dropped by eight percent over the same period of the previous fiscal.
However, the export earnings have increased by about 15 percent over the same period.
As per the international standards, a country must have the enough foreign currency reserves to settle at least three months’ import bills.
source: Forex reserves hit record $19 billion-mark -
bdnews24.com
1. Forex = Foreign Exchange.
It means all the foreign currency that the government has e.g. Dollars, Euros, Riyals, Afghanis but of course usually the US dollar as that is the main currency in the world even now unfortunately.
2. According to the article Bangladesh's forex reserve was $15 billion 9 months ago and now it has shot up to $19 billion.
That is an increase of $4 billion in 9 months or around 30% increase approximately.
$19 billion in international terms however is a small amount and nothing to be too impressed with, however BD (Bangladesh) is going in the right direction.
3. India, with its massive, population has the biggest forex reserve in the SAARC region.
Followed by Bangladesh.
Next is Pakistan, then Sri Lanka. Afghanistan apparently has $6 billion from what I've found online.
SAARC.
The Bangladeshi economy is growing and on the right track but it is still way, way behind Indonesia and Malaysia and will take decades to catch up to them. Bangladesh used to be ahead of Malaysia and Indonesia a few decades ago.
Afghanistan, despite the war, is more advanced than Pakistan in some ways e.g. Afghanistan has 3G mobile services, Pakistan doesn't. If Afghanistan can establish permanent stability and defeat terrorism it can progress economically especially considering the possible TAPI deal.
TAPI pipeline deal.
3G in Afghanistan.
Pakistan, which has been accused by others in South Asia of sponsoring terrorism in India, Bangladesh and Afghanistan, is suffering from economic problems and insurgencies and the federation of Pakistan may once again splinter as it did in 1971.
If Pakistan disintegrates South Asia will probably be a more stable region and the independent states of Balochistan and Sindh will prosper economically.