After completing a normal payment of USD 2.3 billion to the Asian Clearing Union for imports in March-April of this year, Bangladesh’s foreign exchange reserve plummeted to USD 42 billion on May 10, the lowest in 17 months.
Import payments are increasing as the Covid-19 outbreak subsides and the economy recovers, placing pressure on reserve. As a result, the reserve fund continues to shrink.
To combat this, the central bank is supplying dollars from the reserve to the money market. According to a Bangladesh Bank official, the support amount was at USD 5 billion until May 10, compared to August last year. Due to increased import spending, the Bangladeshi rupee continues to devalue against the US dollar. On May 9, the official rate for the US dollar was Tk 86.7, up from Tk 86.45 the day before. On April 26, the figure was Tk 86.2.