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Govt, BB steps help raise reserves again

Published : 10 Dec 2022 09:55 PM | Updated : 11 Dec 2022 01:49 PM

The government and the Bangladesh Bank have taken various measures to reduce imports which is helping to raise reserves again despite the crisis.

The number of letters of credit (LCs) opened for import of goods has come down to half after several steps of the Central Bank which reduced the pressure on foreign currency reserves.

Tll last November 30, the most important indicator of the economy dropped to $33.86 billion, falling below $34 billion dollars.

In the past few days it has risen again to cross $34 billion and on Thursday, the amount of reserves was $34.02 billion, according to BB data.

However, the biggest concern of the Bangladesh economy in the past few months has been higher imports.

Economists and bankers said that this reduction has started to bring relief to the economy.

Entrepreneurs opened $4.02 billion L/C for the import of various types of goods in November. This figure is less than half of the same period last year.

In November 2021, the loan was opened for $8.1 billion.

Businessmen-entrepreneurs opened LCs worth $9.80 billion in March, surpassing all previous records.

It fell to $8.42 billion in April. It further decreased to $7.28 billion in May. In June, however, it increased to $8.49 billion.

In July, the first month of the current fiscal year 2022-23, LC opening was $6.39 billion.

LCs of $6.62 billion and $6.51 billion were opened in August and September respectively. It fell sharply to $4.74 billion in October. It further declined to $4.02 billion in November.

According to the BB data, LCs opened for import of goods in the first five months of the current fiscal year stood at $28.28 billion, down 16.10 percent or $543 million over that in the same time of the previous fiscal.

In the same period of fiscal year 2021-22, it was $33.71 billion.

Bangladesh Bank Governor AbdurRoufTalukder has instructed the banks to provide maximum support to import to ensure supply and price control of daily necessities during the month of Ramadan.

He gave this order in a meeting held by the central bank on December 04 with the association of bank executives, Association of Bankers Bangladesh (ABB).