Remittances from about eight million citizens working abroad raise Bangladesh’s Forex reserve record high

September 3, 2012

According to a Government press release the closing balance of the country’s overall foreign exchange (forex) reserve reached an all-time high at the level of about US$ 11.46 billion on 31st  August 2012 due to steady growth of remittance inflow. The present level of forex reserve can meet import payment needs for, at least, five months, which is a strong positive factor for the country, he said.

Bangladesh received $1.167 billion in remittances from overseas workers in August, up nearly 6 percent from a year earlier but slightly down from the second highest monthly high of $1.2 billion in July, the central bank said on Monday.

The remittances rose 10 percent to $12.84 billion in the financial year that ended in June from a year earlier and central bank governor Atiur Rahman was hopeful of the same pace of growth in the current fiscal year.

Remittances in the first two months of the current financial year rose 11.9 percent.

Bangladesh received a record monthly high of $1.22 billion from migrant workers in January.

Accordingly, the country’s foreign exchange reserves rose for the third month in a row in August to hit a new record high as a result of a rebound in exports and remittances.

Remittances from about eight million citizens are critical for impoverished Bangladesh and are key sources of foreign exchange alongside garments, which account for 80 percent of its total export earnings of around $24 billion a year.