The Bangladesh Bank has recently agreed to calculate reserves following the international standard as advised by the International Monetary Fund (IMF), but the process will be slow considering it as a national sensitive issue, an official said on Sunday.
As per IMF suggestions, the central bank must follow the standard where spending for export development fund (EDF), loan to Sri Lanka and financing domestic projects from reserves must be excluded.
An executive director of Bangladesh Bank, preferring anonymity, told UNB on Sunday that in principle, the central bank has decided to follow the global standards to calculate the amount for foreign reserves. “If the process is followed, the reserves will be reduced to $27.8 billion from $35.8 billion as declared earlier,” he said.
A visiting IMF delegation was informed that Bangladesh Bank has taken a policy decision to publish accounts in line with international standards.
However, as the matter is sensitive, it needs approval from the government high-ups on when it will start, he said.
In addition to following the IMF's procedures, the accounts on the basis of the existing procedures will also be published.
Sector insiders say most of the world's foreign exchange reserves are calculated according to the IMF's Balance of Payments and International Investment Position manual. But Bangladesh calculates net reserves and total foreign exchange reserves when it publishes the amount for foreign currency reserves. Funds provided to various sectors including EDF are excluded from the net calculation. Bangladesh Bank publishes the gross or total account of reserves.
Earlier Bangladesh Bank spokesperson Abul Kalam Azad said the central bank agreed to follow the IMF's suggestions on various issues including foreign exchange reserves.
