Dhaka, Oct 20 (V7N) – Bangladesh's foreign exchange reserves are on a steady rise and stabilizing, according to Bangladesh Bank (BB) Governor Dr. Ahsan H Mansur.

In an interview with UNB on Sunday, Governor Mansur highlighted that the reserves, which previously declined by USD 1.3 billion monthly under the former government, are now experiencing a positive shift. "A substantial amount has already been allocated for fertilisers, electricity, and obligations to Adani-Chevron," he noted.

Just weeks into his tenure, the new governor has contributed to restoring stability in the forex market. Over the past two months, the central bank has effectively reduced deferred payments from USD 2.5 billion to USD 700 million by settling USD 1.8 billion in outstanding liabilities for energy and other essential services.

As of October 8, Bangladesh's foreign exchange reserves were reported at USD 19.82 billion according to BPM6 calculations, while gross reserves reached USD 24.97 billion. The governor emphasized that the central bank aims to eliminate the remaining debt within the next two months, with aspirations for a debt-free status by November-December. “Once this is achieved, we expect market liquidity to improve,” he added.

By clearing these obligations, the financial strain on the economy is projected to diminish, facilitating a boost in economic activities. Additionally, the central bank is preparing to secure an extra USD 10 billion in loans from various international institutions to strengthen the economy further.

Despite the optimistic outlook on forex reserves, the Governor raised concerns regarding the country's escalating foreign debt, which has now reached USD 103 billion, accompanied by increasing repayment pressures. He called for patience, indicating that it may take at least a year to effectively navigate the current debt challenges.

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