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Economic Reporter//

Net foreign exchange reserves of the country decreased by 1.3 billion dollars in the space of one month. On June 30, net reserves were 2,179 million dollars. On July 31, it came down to $2,490 million. In other words, the downward journey of the country’s foreign exchange reserves continues even after the import is heavily controlled. Even with foreign loans from IMF and other organizations, the downward trend of foreign exchange reserves cannot be stopped.

According to sources, the reason for the sharp drop in reserves in July is the payment of $142 billion due to the Asian Clearing Union in May and June. After paying that debt, the reserve came down to $2,460 million. The debt was paid on July 9. Since then, in the last 21 days, the reserve has increased by 3 million dollars to 2 thousand 49 million dollars.

Meanwhile, export income has been decreasing for the last three months. Remittances also decreased in last July. Export earnings and remittances, the two main sources of foreign exchange earnings, have both declined. Meanwhile, despite extensive controls, import costs have started to rise again. Imports earlier fell below an average of $5 billion per month. Last May it increased to over 5 billion dollars. That is, 520 million dollars have been spent. Foreign exchange reserves may again come under pressure as import costs increase and export earnings and remittances decrease.

Meanwhile, installment payment of some foreign loans has been extended till next December. After that period, the installment payment of the country’s foreign debt will increase. Meanwhile, the trend of taking new foreign loans has decreased in recent times. The upward trend of interest rates in the international market continues. No major foreign loan commitments have yet been confirmed. As a result, it is feared that the reserves may come under more pressure.

Meanwhile, the international credit rating agency S&P Global has downgraded Bangladesh’s credit rating by one step. They said they downgraded the country’s foreign exchange reserves due to continued decline. The company has expressed fear that the reserves may decrease further in the future.