Country’s resurgent economy in all fronts is nothing but the fruits of holistic approach taken by the government and Bangladesh Bank (BB). Amid the pandemic when the world economy is shrinking, we have set an example in front of everyone how to keep the economy flourishing even in this dire situation.
Bangladesh's foreign exchange reserves have now touched a new record of $48 billion from only a meagre $18 immediately after the independence of the country.
The forex reserves have helped the country become a big economy in the World in 50 years. Experts opine that the country's forex reserves have recently reached a new record thanks to the upward trend of remittance, export earnings and foreign assistance.
The government should take more measures to
increase the number of export sources which
will lead to a stronger trade surplus
Record growth of remittance inflows, export earnings and foreign assistance mainly helped increase the reserves. Remittance inflow witnessed a rapid growth even during the pandemic. The continuation of remittance helped push foreign currency reserves up, which is helping the rating of the country across the World Bank.
However, amid the pandemic the main thing which helped to keep the market stable is the fascinating number of remittance inflow in the country. Rather than surging number of export earnings, the spike in remittance inflow has really boosted the Forex market. But we have to be aware that this kind of remittance inflow might not continue indefinitely. To sustain high remittance inflow, government should increase the remittance incentive so that the hundi channel gets discouraged for which government loses high amount of revenue. Therefore, the government should take more measures to increase the number of export sources which will lead to a stronger trade surplus.
