November 24, 2022
  • November 24, 2022

Central Bank sold $4.08 billion in 3.5 months of FY23

By on October 15, 2022 0

Despite declining reserves, the central bank continued to sell dollars to other banks to solve the foreign exchange (Forex) problem.

Bangladesh Bank sold $130 million to other banks on October 13.

Total central bank dollar sales for the first three and a half months of the current fiscal year came to $4.08 billion when that amount was added to the previous $3.95 billion.

The amount of dollars sold by Bangladesh Bank to banks since the beginning of the current fiscal year till last Wednesday (October 12), according to data analysis by Bangladesh Bank, was $3.95 billion.

After $130 million on Thursday, it rose to $4.08 billion.

Unlike the sale of $7.62 billion in FY22, about 70,000 crore of taka entered the central bank from the market.

In the first three and a half months of FY23 alone, this amount has now reached Tk 390 billion.

Until October 13, the reserve of the Bank of Bangladesh stood at 36.33 billion dollars.

Actual reserve

Even though the IMF has long opposed the Bangladesh Reserve Account, the Bangladesh Bank still publishes the Reserve Account with liabilities.

However, the central bank, in addition to investing the reserve currency in various overseas bonds, currencies and gold, has also set up various funds in the country with the reserve currency.

The Export Development Fund (EDF) was created with $7 billion from the reserve.

The Long Term Fund (LTF) and the Green Transformation Fund (GTF) were also created with the reserve money.

Money was given to Sonali Bank for Bangladesh Biman to buy planes. Again, money was donated from the reserve for the Rabnabad Canal excavation program at Payra Port.

A total of $8 billion has been used in such programs.

Of this amount, $200 million was paid to Sri Lanka, against which an equivalent amount in Sri Lankan rupees was deposited.

If this $8.2 billion is excluded from the calculation, the actual amount of foreign exchange reserve in the Bangladesh Bank vault is only $28.13 billion.

Sri Lankan Loan

Sri Lanka took out a $200 million loan from Bangladesh in 2021 on the condition that it be repaid within three months.

Not being able to repay this loan on time, Sri Lanka asked for several rounds of time and Bangladesh also gave time.

The last time to pay the dollar is April 2023.

Bangladesh Bank Governor Abdur Rouf Talukder told reporters after the World Bank-IMF Board of Governors meeting in Washington on Oct. 13 that the $200 million would be returned by March of next year.

Outside the board of governors meeting, he met Sri Lanka’s central bank governor P Nandalal Weerasinghe and told reporters that he got such assurance there.

Abdur Rauf Talukder said, “The country could not return our money on time due to the economic crisis. We extended the loan repayment period twice.

The Governor informed, “Nandalal Weerasinghe has confirmed that they are restructuring the economy and doing so in collaboration with India, Japan and China. They could reach a final agreement with the IMF within the next two months. The Governor of the Central Bank of Sri Lanka said that they would be able to repay our loan in the next period.

“The country hasn’t talked about it for so long but today their governor assured me,” the governor added.