The gap between Bangladesh’s foreign exchange gross reserves and net reserves is widening. As of April, the IMF reported Bangladesh’s net reserves at $12.8 billion, while the Bangladesh Bank reported a gross reserve of $25.37 billion, revealing a gap of $12.57 billion (50.45%). This disparity stems from differences in reporting standards, with the IMF excluding certain liabilities.
The IMF, recognizing the challenges, has approved $4.7 billion in loans to help mitigate the crisis. Net reserves have declined sharply, impacting the country’s import capacity. The government’s steps, including controlling imports and devaluing the currency, have not halted reserve depletion.
From April 2022 to April 2023, Bangladesh’s reserves fell by 45%, contrasting with stable or increasing reserves in neighboring countries. This drop has been exacerbated by high inflation, delayed policy adjustments, and dependency on informal financial systems. Structural reforms and consistent policy implementation are critical to reversing this trend and stabilizing the economy.
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