Dhaka, Bangladesh (BBN)– Bangladesh’s foreign exchange (forex) reserve crossed the US$21 billion-mark for the first time on Monday, thanks to a robust growth of export earnings.
 
The reserve rose to $21.03 billion on the day, setting a new record, from $20.93 billion of the previous working day, according to the central bank statistics.
 
"The country’s forex reserve has crossed the $21 billion-mark due mainly to higher growth of export earnings, rising trend of inward remittance and lower import payment pressure,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.
 
He also said the country will be able to settle more than six months' import bills with the existing forex reserve.
 
The overall exports grew by 12.56 per cent to a record $27.38 billion in the July-May period of the current fiscal year (FY) 2013-14 compared to the same period last year as restoring political stability in Bangladesh.
 
On the other hand, the country received $593.42 million as remittances between June 1 and June 13 from Bangladeshi nationals who are working abroad, another BB official said.
 
"We expect that the inflow of remittances may touch $ 1.20 billion by the end of this month," the BB official said adding that the central bank was working continuously to help boost the flow of inward remittances.
 
He also said the central bank earlier took a series of measures to encourage expatriate Bangladeshis to send their hard-earned money through the formal banking channel, instead of using illegal “hundi” system, to boost the country’s foreign exchange reserves.
 
BBN/SSR/AD-16June14-6:16 pm (BST)