Markets

Bangladesh forex reserves hit record on remittances, exports

Published October 19, 2012 Updated October 19, 2012 08:28am

 

The reserves were enough to pay for four months of the country's imports, a month more than the minimum set by the International Monetary Fund, A.F.M. Asaduzzaman, spokesman of Bangladesh Bank, said.

 

Remittances from Bangladeshis working abroad have picked up, ahead of the Eid-al Adha festival later this month, officials said.

 

Money sent home by about eight million citizens abroad is a key source of foreign exchange alongside garment exports, which account for 80 percent of the total export earnings of around $25 billion a year.

 

A majority of Bangladesh expatriates is employed in the Middle East and almost 60 percent of the remittances come from there.

 

The central bank has purchased $1.7 billion from commercial banks since July to hold down the value of the local currency, against the US dollar, a central bank official said.

 

"We support this intervention as it will encourage both the exporters and expatriates as these two sectors are the mainstays of our economy," Shah A Sarwar, Managing Director of the private Trust Bank Limited, said.

 

Copyright Reuters, 2012