The foreign exchange reserves of Bangladesh have seen a slight increase ahead of Eid.
According to the Bangladesh Bank, the total reserves at the beginning of this month were $24.21 billion. By 12 June, it had risen to $24.52 billion, marking an increase of $310 million over a span of 12 days.
During the same period, under the IMF's Balance of Payments Manual 6 (BPM6) accounting method, reserves increased by $487.3 million. At the beginning of this month, the reserves under BPM6 were $18.72 billion, which grew to $19.2097 billion by 12 June.
At the start of last month, the total reserves stood at $25.37 billion. However, a payment of $1.63 billion for Asian Clearing Union (ACU) dues in the second week of the month reduced the reserves to $23.90 billion by 15 May. Under BPM6, the reserves at that time fell to $18.42 billion. Over the subsequent four weeks, the reserves saw an upward trend. Consequently, in the second week of the current month, the reserves under BPM6 increased by $538.1 million.
In the midst of a dollar crisis and deficits in financial and current accounts, Bangladesh sought a loan from the International Monetary Fund (IMF) in July 2022. Six months later, on 30 January of last year, the IMF approved a loan of $4.7 billion. On 2 February, Bangladesh received the first installment of $476.3 million, followed by a second installment of $681 million in December of the same year. The third installment of $1.15 billion is expected to be released next week, which will further bolster the reserves.
This increase in reserves is a positive development for the country's financial stability, providing a cushion against economic uncertainties as the Eid festival approaches.
