Business Desk :
The foreign currency reserves of the Bangladesh Bank is on the decline. The reserves dropped to $31.93 billion from $33.36 billion between February 28 and March 8, according to the central bank.
Officials of the central bank say import costs have increased, particularly after the rise in onion and rice prices in India. Moreover, the reserves took a hit after clearing payment for imports of Asian Clearing Union (ACU).
A Bangladesh Bank official says there is no reason to panic at the decline of the reserves mainly because of a rise in import cost. “It will be possible to foot import bills for the next six to seven months with the current reserves,” the official added.
According to the central bank, the import cost increased by 25.78percent in the first six months of the 2017-18 fiscal compared to the same period the previous year. During July to December, food import (rice and wheat) increased by 212percent, report Dhaka Tribune..
The import of necessary machinery for setting up industries rose by about 35percent during this period while the import of fuel oil and raw material for industries increased by 28percent and 15percent respectively.
In the first six months of this year, Letters of Credit (LC) worth $40 billion were opened. The amount is expected to cross $60 billion at the yearend.
The foreign currency reserves of the Bangladesh Bank is on the decline. The reserves dropped to $31.93 billion from $33.36 billion between February 28 and March 8, according to the central bank.
Officials of the central bank say import costs have increased, particularly after the rise in onion and rice prices in India. Moreover, the reserves took a hit after clearing payment for imports of Asian Clearing Union (ACU).
A Bangladesh Bank official says there is no reason to panic at the decline of the reserves mainly because of a rise in import cost. “It will be possible to foot import bills for the next six to seven months with the current reserves,” the official added.
According to the central bank, the import cost increased by 25.78percent in the first six months of the 2017-18 fiscal compared to the same period the previous year. During July to December, food import (rice and wheat) increased by 212percent, report Dhaka Tribune..
The import of necessary machinery for setting up industries rose by about 35percent during this period while the import of fuel oil and raw material for industries increased by 28percent and 15percent respectively.
In the first six months of this year, Letters of Credit (LC) worth $40 billion were opened. The amount is expected to cross $60 billion at the yearend.
