Economy
Forex Reserves Drop $1.3B in July Amid Turmoil
Bangladesh’s foreign exchange reserves saw a sharp decline of $1.3 billion (over Tk 15,000 crore) in July compared to the previous month, as per International Monetary Fund guidelines. This drop is attributed to diminished remittance inflows and export earnings amidst ongoing national unrest.
Data from Bangladesh Bank indicated that the forex reserves decreased from $21.78 billion on June 30 to $20.48 billion on July 31.
With the current bank exchange rate at Tk 118 per dollar, the $1.3 billion decrease translates to Tk 15,328 crore.
In May, reserves had plunged to $18.64 billion but rebounded to $21.78 billion in June following the receipt of $1.15 billion from the International Monetary Fund and $900 million in loans from other sources.
However, July witnessed a sharp fall in reserves due to declining remittance and export earnings amid the unrest and curfew, according to Bangladesh Bank officials.
Central bank data showed a 25 percent drop in remittance inflows to $1.9 billion in July, compared to $2.54 billion in June. In July 2023, the figure was $1.97 billion.
The government imposed a curfew starting at midnight on July 19 amid quota reform protests. Since July 16, more than 200 people have been killed, and several thousand injured in the protests.
An internet blackout beginning on July 18 further disrupted digital and mobile financial services, bankers reported.
The curfew was eased on July 24, allowing offices and banks to operate for limited hours, with all offices resuming normal schedules by July 31.
A partial restoration of broadband internet began on the evening of July 23, with mobile internet services fully restored by July 28.
Amid the nationwide unrest, the dollar rate soared to Tk 125 on the kerb market on July 31 and became scarce in money exchange houses by August 1.
As of July 31, the net foreign exchange reserve was $15.47 billion.
According to conventional valuation by Bangladesh Bank, reserves also fell from $26.81 billion on June 30 to $25.9 billion on July 31.
The exchange rate per dollar was Tk 84.81 in June 2021, Tk 93.45 in June 2022, and Tk 106 in June 2023.Bangladesh’s foreign exchange reserves saw a sharp decline of $1.3 billion (over Tk 15,000 crore) in July compared to the previous month, as per International Monetary Fund guidelines. This drop is attributed to diminished remittance inflows and export earnings amidst ongoing national unrest.
Data from Bangladesh Bank indicated that the forex reserves decreased from $21.78 billion on June 30 to $20.48 billion on July 31.
With the current bank exchange rate at Tk 118 per dollar, the $1.3 billion decrease translates to Tk 15,328 crore.
In May, reserves had plunged to $18.64 billion but rebounded to $21.78 billion in June following the receipt of $1.15 billion from the International Monetary Fund and $900 million in loans from other sources.
However, July witnessed a sharp fall in reserves due to declining remittance and export earnings amid the unrest and curfew, according to Bangladesh Bank officials.
Central bank data showed a 25 percent drop in remittance inflows to $1.9 billion in July, compared to $2.54 billion in June. In July 2023, the figure was $1.97 billion.
The government imposed a curfew starting at midnight on July 19 amid quota reform protests. Since July 16, more than 200 people have been killed, and several thousand injured in the protests.
An internet blackout beginning on July 18 further disrupted digital and mobile financial services, bankers reported.
The curfew was eased on July 24, allowing offices and banks to operate for limited hours, with all offices resuming normal schedules by July 31.
A partial restoration of broadband internet began on the evening of July 23, with mobile internet services fully restored by July 28.
Amid the nationwide unrest, the dollar rate soared to Tk 125 on the kerb market on July 31 and became scarce in money exchange houses by August 1.
As of July 31, the net foreign exchange reserve was $15.47 billion.
According to conventional valuation by Bangladesh Bank, reserves also fell from $26.81 billion on June 30 to $25.9 billion on July 31.
The exchange rate per dollar was Tk 84.81 in June 2021, Tk 93.45 in June 2022, and Tk 106 in June 2023.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
