Reserves stand at $36.12bn on strong remittances

Bangladesh's gross foreign exchange reserves stood at $36.12 billion as of October 7, with robust remittance inflows offsetting a modest dip in the reserve position, according to the latest Bangladesh Bank data.

Under the International Monetary Fund's BPM-6 accounting method, reserves stood at $31.31 billion, Bangladesh Bank officials confirmed on Wednesday. By the central bank's own calculation, reserves had been $37.40 billion on September 1 before falling after Bangladesh paid $1.39 billion in import bills to the Asian Clearing Union for the July-August settlement period. They subsequently stood at $36.43 billion on September 8, $36.27 billion on September 10, $36.32 billion on September 16, $36.30 billion on September 20 and $36.14 billion on September 29.

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Meanwhile, remittances have provided a welcome fillip to the country's external position, with Bangladesh receiving $513 million in the first five days of October alone, including $109 million on October 5. Economists and analysts said that sustained inflows could further bolster reserves and lend greater support to economic activity and the domestic market amid headwinds in global markets.