Dhaka, Bangladesh (BBN) - The country's foreign exchange (forex) reserve crossed the US$22 billion-mark for the first time Thursday, thanks to a robust growth of export earnings, officials said.
The reserve rose to $22.05 billion on the day, setting a new record, from $21.72 billion of the previous working day, according to the central bank statistics.
"The forex reserve has crossed the $22 billion-mark due mainly to higher growth of export earnings, rising trend of inward remittances and lower import payment pressures in the recent months,” Kazi Saydur Rahman, General Manager of the Forex Reserve and Treasury Management of the Bangladesh Bank (BB), told BBN in Dhaka.
Mr. Rahman also the country will be able to settle seven months' import bills with the existing forex reserve.
Earlier on June 16 last, the reserve crossed the $21 billion mark.
“Higher forex reserve will help improve the country’s rating position and encourage investors particularly foreign ones to invest in Bangladesh,” he noted.
The central banker also said buying the US dollar from the commercial banks directly has also contributed to increasing the forex reserve in the recent months.
The central bank is purchasing the US currency from the banks to protect the interests of exporters and migrant workers by keeping the exchange rate of the local currency against the greenback stable.
A total of $776 million was bought from the commercial banks between July 2 and August 7 of the current fiscal year (FY) 2014-15 as part of the BB's intervention in the market, the BB data showed.
BBN/SSR/AD-07Aug14-5:22 pm (BST)