Summary:
- Bangladesh’s foreign reserves can cover 4 months of imports, with current gross reserves at $24.90 billion and BPM6-calculated reserves at $20 billion, ensuring economic stability.
- Remittance inflows hit historic highs with a $3 billion increase in 5 months, while exports grew by $2.5 billion despite political uncertainties.
- Authorities have recovered 80% of stolen reserve funds, with ongoing legal proceedings involving FBI and international partners to retrieve remaining amounts.
- Dubai has surpassed Saudi Arabia as the top remittance source, raising concerns about exchange rate manipulation as Saudi funds are being routed through Dubai.
Bangladesh’s foreign exchange reserves are sufficient to cover four months of imports, Bangladesh Bank Governor Dr. Ahsan H Mansur assured during a “Branding Bangladesh” event at a Dhaka hotel on Saturday.
The central bank chief highlighted several positive developments in the country’s financial sector. Remittance inflows have reached historic highs despite political instability, with a $3 billion increase in the past five months alongside a $2.5 billion growth in exports.
“We have enough reserves to cover four months of imports, so there is nothing to worry about,” Dr. Mansur stated at the event. The gross foreign exchange reserves currently stand at $24.90 billion, while reserves calculated according to IMF’s BPM6 method amount to $20 billion.
In addressing money laundering concerns, the governor revealed that authorities have successfully recovered 80% of the funds stolen from reserves, with legal proceedings underway to retrieve the remaining amount. He specifically mentioned that a single Chattogram-based organization had illegally transferred $20 billion abroad.
“We are in discussions with the FBI and other agencies to recover the laundered money, and foreign lawyers are being appointed,” Dr. Mansur explained.
The governor expressed concern about Dubai emerging as the top remittance source, surpassing Saudi Arabia. He explained that Saudi remittances are being routed through Dubai, where some institutions are attempting to manipulate exchange rates.
Regarding remittance incentives, Dr. Mansur noted that the government spends 7,000 crore taka annually on the 2.5% cash incentive for formal channel remittances. He suggested that sending skilled workers abroad could potentially increase annual remittance inflows to $6 billion.
The governor emphasized that the establishment of good governance has effectively curbed money laundering from the country, marking a significant shift from previous practices. He assured that legal actions are being pursued to recover laundered funds, with cooperation from international partners.
Looking ahead, Dr. Mansur expressed confidence in maintaining stable foreign exchange reserves while continuing efforts to strengthen the country’s financial sector through improved governance and oversight measures.
Source: Ntv
