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.
