Bangladesh: Fluctuating Forex Reserves Stir Market Instability and Price Hikes
May 16, 2024
Amidst a backdrop of fluctuating foreign exchange reserves, Bangladesh Bank has been employing varied methodologies to calculate the nation’s reserves, unveiling differing figures.
Traders and consumers alike have responded to these variations with increased apprehension, leading to price surges across various commodities.
As per the central bank’s latest figures, the total reserves stood at $23.77 billion as of May 14. The International Monetary Fund’s (IMF) method, however, records the reserves at a lower $18.32 billion, with actual usable reserves slightly less than $13 billion.
While the central bank does not officially publish net reserve data, Dr. Ahsan H. Mansur, a former senior economist at the IMF, reassures that the gross reserves are still over $18 billion, indicating that the reserve levels are not immediately at risk. However, he acknowledges ongoing concerns regarding confidence in the money market and the macroeconomic landscape.