Forex reserve crosses $10bn
Wednesday, 11 November 2009

Bangladesh's foreign exchange reserve crossed $10 billion, a new record, on Wednesday.

It stood at $10.3 billion on Wednesday with the addition of an Asian Development Bank loan, the Bangladesh Bank governor said.

Governor Atiur Rahman told bdnews24.com high remittance inflow from overseas workers continues to boost the forex reserve.

He said the current reserve was enough to meet import costs for the next seven months.

According to economists, a healthy forex reserve should meet at least three months' import expenditure.

Bangladesh economists have also been warning that inflated reserves may reflect a fall in import of capital machinery and industrial raw materials.

But, the governor said, capital machinery import were on the rise.

He said the main reason for the country's strong forex balance was a fall in food imports.

"In fact, rice import has dropped to zero," said Rahman.

He said fuel prices had also come down in the international market this year due to the global recession, which also led to low import costs overall.

Source: bdnews24.com

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