Foreign Aid Receipts Decline to $3.725 Billion

Economic Tag: Foreign Aid

In the July-February period of fiscal year 2023-24, Bangladesh’s net receipts of foreign aid dropped to $3.725 billion from $3.869 billion in the previous year. However, total foreign aid slightly increased to $4.997 billion. Project aid constituted the majority, totaling $4.987 billion, a 2.79% increase. Despite this, the country’s economy faces challenges such as a dollar crisis and a depletion of reserves. To address this, the government secured $4.7 billion in loans from the IMF over three years. Over the past 34 months, the Bangladesh Bank sold approximately $32.79 billion from its foreign exchange reserves. The BB has adopted a market-based exchange rate regime, selling dollars at Tk 110 each, but many banks are collecting remittances at rates as high as Tk 118 each.

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