Remittance Up By 10 pc Till May
BB injected $822m to banks for clearing trade bills
Bangladesh Bank (BB) injected an amount of $822 million in the banking system to make end clearance of trade bills for FY20, according to its latest statistics.
The central bank data said it sold the mentioned amount of foreign currency from its reserve to commercial banks on Wednesday for smooth ending of the country's external trade liabilities such as for making payment on trade bills.
The latest injection took place on Wednesday when the BB sold $10 million to some state-owned banks to clear LCs of Bangladesh Petroleum Corporation for importing liquefied natural gas.
After selling $10 million, foreign currency reserves with the central bank on the day stood at $33.19 billion supported with the Asian Development Bank's budgetary support of $250 million adding to the reserve.
A senior BB official said inward remittance and fall in export earning slowed down reserves building and yet it is maintaining positive trend.
According to the central bank data, from July 1 last year to May 19 this year, Bangladesh received $15.95 billion in remittance. The figure was $14.39 billion in the same period of the previous fiscal year 2018-19. Remittance increased by 10.80 percent during this fiscal year.
Md Serajul Islam, executive director and spokesperson for the Bangladesh Bank, has said remittance has increased ahead of Eid even though a significant number of expatriate workers had returned home amid the coronavirus pandemic situation.
He said as the upcoming budget will be placed in earlier June, it is unlikely to inject fresh dollars to the market. So the latest selling in this month could be considered as the last for FY20.
From May 1 to 19 this year, Bangladesh received $1,091 million in remittance. The figure was $1,094 million from May 1 to 19 last year. According to the central bank data, the Bangladesh Bank sold $2,339 million to the commercial lenders during last fiscal year.
"The central bank always supports the lenders with dollar. If there was no pandemic, the selling figure could have increased further", the official said.
In the last five months, the central bank did not change the inter-bank exchange rate of US dollar. The rate is Tk84.95 now in spot market, he said.