Bangladesh experienced a decline in its foreign currency reserves, slipping below the $30 billion mark for the second time in May. The reserves initially dropped to $29.77 billion on May 7 as import bills worth $1.18 billion were cleared by the Bangladesh Bank. However, two days later, the reserves increased to $30.36 billion with the assistance of loans provided by the World Bank.
The release of $507 million by the multilateral lender provided some relief to the economy, alleviating the stress caused by various macroeconomic factors. Nonetheless, as of the latest data from the central bank, the reserves currently stand at $29.97 billion. Comparing the present figures to the previous year, Bangladesh’s reserves have witnessed a significant decline of about 30%, dropping from $42.29 billion to the current level. The country has been grappling with strained reserves for months, primarily due to higher imports in relation to lower-than-expected export earnings and remittances.