With the implementation of the International Monetary Fund’s (IMF) guidelines by Bangladesh Bank, forex reserves have now dropped to $23.56 billion. This is a reduction of $6.44 billion from Bangladesh Bank’s own calculations.
The country’s reserves on Wednesday stood at $23.56 billion, compared to the previous calculation of $29.92 billion, according to official data of the central bank.
Bangladesh Bank recently announced the monetary policy for the first half of the current financial year by lifting the interest rate limit on the advice of the IMF as a condition for getting loans.
On the other hand, according to the new monetary policy, Bangladesh will have to follow the Balance of Payment and International Investment Position (BPM-6) formula.
As a result, the country’s reserve now stands below $24 billion. And if it is fully followed, the net reserve will drop to $20 billion.
Regarding the foreign exchange reserve calculation method, central bank governor Abdur Rouf Talukder recently said that Bangladesh Bank will calculate the foreign exchange reserve from now on in both methods.
That is, it will be done in the same way as it was done before, and it will also be done in the BPM-6 method.
The excluded elements in the new calculation include foreign currency loans to local banks — the Export Development Fund, deposits with state-owned local banks, deposits with the IDB Group, fixed-income securities below investment grade, a loan to Sri Lanka, and other foreign currency assets in non-convertible currencies.
