Dhaka: Describing remittances as a crucial lifeline for Bangladesh, Finance Adviser Salehuddin Ahmed asserted that Bangladesh Bank (BB) is on track to maintain a stable exchange rate, despite a temporary easing in the demand for the US dollar. “If demand for the dollar goes down, the price should also fall. But if we let the exchange rate slide without restraint, it will send a bad signal to those who send remittances . . . we have to keep their interests in mind,” he emphasized. The adviser made these remarks following meetings of the Advisers Council Committee on Government Purchase (ACCGP) and the Advisers Council Committee on Economic Affairs (ACCEA).
According to Bangladesh Sangbad Sangstha, Salehuddin defended Bangladesh Bank’s recent decision to acquire nearly $2 billion from the market. However, he also highlighted the necessity of maintaining sufficient reserves for emergencies. He explained that the reserve position is not yet self-sufficient, noting the potential need for immediate imports in case of events such as crop failure. He emphasized that foreign exchange reserves are not only critical for imports but also serve as a safeguard against unforeseen economic shocks.
Bangladesh Bank has recently intensified its efforts to stabilize the forex market, purchasing nearly $2 billion from commercial banks. BB data indicates that total dollar purchases through auctions have reached $1.74 billion in the current fiscal year. The combination of stronger remittances and exports, along with the central bank’s buying spree, has elevated reserves to approximately $31 billion as of September 17. However, according to the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh’s foreign exchange reserves are recorded at $26.09 billion.