Bangladesh Bank witnessed a significant surge in foreign currency reserves, soaring by $1.51 billion within just seven days.
The latest figures from the central bank revealed a rise from $19.17 billion on December 13 to $20.68 billion by December 20.
The boost in reserves is attributed to substantial loans obtained from two major institutions: the International Monetary Fund (IMF) and the Asian Development Bank (ADB). Specifically, Bangladesh received $689 million from the IMF and an additional $400 million from the ADB a week before the surge in reserves.
These numbers align with the balance of payments and investment position manual (BPM6) of the IMF, which serves as the basis for calculating the foreign exchange figures.
Bangladesh Bank commenced reporting foreign currency reserves by the BPM6 manual back in July. This strategic shift aims to ensure accurate and transparent reporting of the nation’s dollar reserves.
As per the manual, gross foreign reserves comprise various assets like gold, cash in US dollars, bonds, treasury bills, reserve position in the IMF, and special drawing rights, denoting a form of international currency established by the IMF.