Forex reserves hit record high $45.05 billion

Due to the upward trend of remittances, the country’s foreign exchange reserves on 31 May hit a new record of $45.05 billion.

Earlier on 3 May, the reserves – one of the major macroeconomic indicators of an economy – touched the $45 billion mark – $45.1 billion to be exact. The pressure of import payments dragged down the figure to $44 billion on the very next day.

With the current reserves, Bangladesh can meet import payments for eight months. The three-month import payment threshold is the minimum level of reserve adequacy in normal times.

As Taka is supposed to be stronger against the US dollar due to the burgeoned forex reserves, the central bank is buying additional amounts of dollars from the foreign exchange market to maintain stability of the exchange rate.

Besides, the government with the reserves has formed an infrastructural development fund. The central bank recently has approved the government to lend Sri Lanka $200 million from the reserves.