Dhaka, Bangladesh (BBN)- Bangladesh’s gross foreign exchange (forex) reserves crossed the $36 billion mark on Wednesday following the receipt of nearly $320 million in loan assistance from the Japan International Cooperation Agency (JICA).
According to central bank officials, the country's gross forex reserves increased to $36.10 billion on the day from $35.80 billion a day earlier after the JICA disbursement.
The JICA is a government agency responsible for delivering the bulk of Japan's Official Development Assistance (ODA).
Under the International Monetary Fund (IMF)'s Balance of Payments and International Investment Position Manual, Sixth Edition (BMP6) methodology, the reserves rose to $31.55 billion from $31.24 billion, according to the latest data released by the Bangladesh Bank (BB).
"Our gross forex reserves may touch $37 billion by the end of June if the government secures additional funds from overseas sources," a BB senior said, adding that more foreign financing is expected to be reflected in the reserves shortly.
The improvement in the reserve position comes amid continued inflows from development partners.
Meanwhile, the World Bank has recently approved a $450 million loan to support reforms aimed at strengthening Bangladesh's banking sector and reviving economic growth and job creation.
Earlier, on June 14, the Asian Development Bank (ADB) disbursed more than $1.0 billion in budget support to Bangladesh.
Central bank officials, however, said stronger remittance inflows and lower import payment obligations have also contributed to the improvement in the country's foreign exchange reserve position.
The BB’s dollar purchases from commercial banks under the prevailing free-floating exchange rate regime have further boosted reserves, they explained.
The central bank has bought $6.42 billion from banks since July 13 last year.
BBN/SSR/AD