Forex reserves rise past $30b

The country’s foreign exchange reserves yesterday rose past $30 billion as the inflow of remittances is now maintaining an upward trend ahead of Eid-ul-Azha. The reserves stood at $30.01 billion yesterday in contrast to $29.95 billion on Tuesday, said a Bangladesh Bank official. The reserves stood at $41.82 billion at the end of June last year. Although the central bank yesterday sold dollars to the tune of $74 million to some commercial banks to help them clear their import bills, reserves surpassed $30 billion riding on the higher inflow of remittances. A finance ministry official said the Asian Development Bank has recently given Bangladesh $400 million in budget support, which also led to a hike in the forex reserve. The BB has so far injected $13.43 billion into the banking sector this fiscal year. Expatriate Bangladeshis sent remittances amounting to $1.53 billion in the first 20 days of this month whereas it was $1.10 billion during the same period a year ago. The multilateral lender released $507 million to the government, giving a little bit of breathing space to the economy from the ongoing stress in the different zones of the macroeconomy. But the reserves slipped below the $30-billion mark again on May 25.

Source: https://www.thedailystar.net/business/economy/news/forex-reserves-rise-past-30b-3352721

Foreign investors can now keep dollars in bank accounts for 1 year

In a bid to increase the flow of foreign direct investment (FDI) in the country, the central bank has allowed foreign investors to keep foreign currency in their relevant account for a year. Earlier, if foreign investors sent foreign currency to the country, it had to be encashed in taka and kept in a local currency account. The decision of the central bank would now make investors more interested. The tenure of these accounts shall be one year from the date of opening, subject to closure immediately at the end of the prescribed time after encashment of the fund, if any, held in an account, the circular said. An official of the central bank said foreign investors have been given the opportunity to retain foreign currency so that the country’s investment is not hindered due to the dollar crisis. Central bank data shows that foreign net investment in the December quarter 2022 amounted to $703 million, which was $1,100 million in the previous quarter. Foreign net investment in Bangladesh increased by 20.18% in 2022 compared to 2021, reaching $3,479 million from $2,895 million.

Source: https://www.tbsnews.net/economy/banking/foreign-investors-can-now-keep-dollars-bank-accounts-1-year-653946

MFS transactions hit record Tk 1.25 lakh crore in April

Mobile financial service (MFS) providers recorded Tk 1.25 lakh crore-worth transactions in April, the highest ever so far, buoyed by an increase in spending, payments and money transfers ahead of the Eid-ul-Fitr festival. The transactions in April rose 15 per cent from the previous month’s Tk 1.08 lakh crore, and April was the second consecutive month that registered a growth momentum in the use of the MFS, according to data released by Bangladesh Bank. Year-on-year, transactions through MFS platforms grew 16 per cent from Tk 1.07 lakh crore in April 2022. April’s data showed that average daily transaction crossed Tk 4,000 crore, which was Tk 1,200 crore four years ago.

Source: https://www.thedailystar.net/business/economy/news/mobile-operators-handsets-now-instalments-3352711