Bangladeshi banks are witnessing a decline in foreign currency reserves, posing challenges for managing repayment pressure. Over the past nine months starting from July of the current fiscal year, banks’ foreign currency reserves have decreased by approximately $85 million.
Commercial banks are considering collecting deposits through offshore banking to increase dollar supply. Despite efforts by both the central and commercial banks, reserves continue to decline, with a notable decrease of $80 million in reserves during February to April. The decline in reserves is also attributed to increased import restrictions, leading to a decrease in import amounts by about $26 billion during July to March of the current fiscal year compared to the previous year. To address the shortage, commercial banks are encouraging deposits through offshore banking, while the government is prioritizing foreign loan repayment over new borrowing.
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