The profit of Bangladesh’s Central bank witnessed a substantial decline in the fiscal year 2022-23, plummeting by approximately 95%, or Tk14,247 crore, as compared to the previous fiscal year. The decline can be attributed mainly to reduced gains from foreign exchange operations. The Bangladesh Bank’s operating profit for the fiscal year 2022-23 stood at Tk1,5000 crore, a notable drop from Tk29,247 crore in the preceding fiscal year. The bank’s foreign exchange operating gains were significantly lower due to minimal disparity between buying and selling rates, influenced by the fluctuating foreign currency value against the local currency.
In contrast, the Central bank had achieved remarkable gains in the fiscal year 2021-22, stemming from profitable dollar sales, supported by substantial variances in exchange rates. The government’s bank borrowing escalated to historic levels in the fiscal year 2022-23, exceeding initial budgetary targets, as it sought increased financial support amid revenue shortfalls and reduced foreign inflows. The total borrowing from the banking system, with a significant share acquired from the Bangladesh Bank, stood at Tk1.24 lakh crore by June 2023, surpassing the revised borrowing target of Tk1.15 lakh crore.
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