At what rate is the reserve of Bangladesh decreasing and is there any threat in this regard?

September is the month of disaster in the fall of reserves in Banik Barta news headlines on Bangladesh’s reserve situation. It is said in the news that in September this year, foreign exchange reserves in the country decreased by 2 billion dollars.

The report said that such a large loss of reserves has not been seen before in a span of one month in Bangladesh.

Quoting information from Bangladesh Bank, this news is saying that Bangladesh’s foreign reserves have decreased since August 2021. Reserves have been declining at an average rate of one billion dollars per month, but for the first time in September, reserves fell by two billion dollars.

According to experts, the loss of $2 billion from the reserves in just one month is not a good sign at all. Failure to meet the conditions has threatened to suspend the second tranche of the IMF’s promised loan. In that case, the country’s reserve crisis will be more intense.

In the news, it has also come up that in this situation of reserves, the country’s remittance or expatriate income has also seen a big decline in September. Last month, remittances to the country reached 134 crore 36 lakh dollars, which is the lowest in the last 41 months.

The headline of Manbzamin’s report on the economic situation in Bangladesh is Economy under pressure. The picture of tension in the country’s remittance flow, export income, dollar crisis, defaulted loans, etc. has emerged in this report.

Quoting economic analysts, this news says that the country’s economy is facing challenges due to high inflation, foreign trade pressure, financial sector risks, weak monetary policy, imposition of duties on imports, and poor revenue collection management. One of the challenges is controlling high inflation.

News has emerged that the country’s reserves are shrinking by about a billion dollars every month. The record of defaulted loans stands at 1 lakh 56 thousand 39 crores which is more than 10 percent of the total loans.

Besides, Bangladesh Bank fixed the price of dollar at 113 taka 30 paisa, but people have to buy dollar at the price of 120 taka or more in the open market.

Bangladesh Bank is quoted as saying that the remittance flow also collapsed in September. At the same time, the export earnings are decreasing.

In this situation, the government promised to keep inflation at six percent, but in reality, inflation is more than double that. Consumers Association Bangladesh reported that food price inflation rose to 12.54 percent in August, the highest in 11 years.

Jugantar’s report on commodity prices is trying to implement the price of potato and onion. Commerce Minister Tipu Munshi said in a statement on Friday that the target set by the government for fixing the prices of potatoes, onions, and eggs has not been achieved.

The Commerce Minister pointed out the dishonesty of traders, increasing the price of products through syndicates behind the non-achievement of the target.