Despite various efforts, including curbing imports, Bangladesh Bank’s foreign exchange reserves continue to decline and cannot be controlled.
The net foreign exchange reserves of Bangladesh Bank were more than US$ 48 billion in August 2021, which has now declined to US$ 26.74 billion.
Current foreign exchange reserves according to the International Monetary Fund (IMF)’s calculation methodology, BPM6, are US$20.90 billion.
There is another calculation of the central bank’s net foreign exchange reserves, which is disclosed only to the IMF. The IMF says that according to that calculation the country’s current foreign exchange reserves are less than US $ 17 billion. Reserves have been declining by US$1 billion per month for the past two years.
The central bank’s remaining foreign exchange reserves can cover three months of import costs. Normally a country’s reserves should cover three months’ worth of imports. In such a situation, now Bangladesh is on the verge.