Foreign exchange reserves hit $31.09 billion by Oct end

[bluesky]

01 Nov 2016, 18:52:16 | Updated : 01 Nov 2016, 18:54:55

Forex reserves hit $31.90b by Oct end


Bangladesh’s foreign currency reserves hit a record US $31.90 billion by the end of October month, Bangladesh Bank (BB) authorities said on Tuesday (November 1).

Central bank officials said the forex reserve is around $4.32 billion higher than that of the same period in 2015.

They said the $31.90 billion reserve is sufficient to cover about nine months’ imports.

Steady exports of readymade garment (RMG), the country’s main foreign currency earning sector, and remittances sent by Bangladeshis working abroad, are the key factors of the forex reserve boost, according to a news agency.

 

[Mage]

I don't know much about economics. Can someone tell me why is having forex reserve important?

 

[ravi gupta]

01 Nov 2016, 18:52:16 | Updated : 01 Nov 2016, 18:54:55

Forex reserves hit $31.90b by Oct end


Bangladesh’s foreign currency reserves hit a record US $31.90 billion by the end of October month, Bangladesh Bank (BB) authorities said on Tuesday (November 1).

Central bank officials said the forex reserve is around $4.32 billion higher than that of the same period in 2015.

They said the $31.90 billion reserve is sufficient to cover about nine months’ imports.

Steady exports of readymade garment (RMG), the country’s main foreign currency earning sector, and remittances sent by Bangladeshis working abroad, are the key factors of the forex reserve boost, according to a news agency.

If i consider pakistan forex as 24 billion USD,That means is it better then pakistan by 31%.

 

[Mage]

If i consider pakistan forex as 24 billion USD,That means is it better then pakistan by 31%.

Why compare with Pakistan?

And why forex is important?

 

[ravi gupta]

Why compare with Pakistan?

And why forex is important?

Since pakistan is bigger economy and country.
That mean they are doing better then other bigger economies.

FOREX is important its reflects your country purchasing capacity.

 

[~Phoenix~]

31 billion? Thats almost half of the total Myanmarnese economy!

FOREX is important its reflects your country purchasing capacity.

Yeah,and by Purchasing Power Parity,we are the 33rd largest economy on Earth!

Why compare with Pakistan?

Because Pakistanis thought that we would do better if we had stuck as Pakistan...

 

[damiendehorn]

Why compare with Pakistan?

And why forex is important?

There isn't much point to compare the foreign reserves of the two countries as there are differing circumstances. It's important to have a healthy foreign reserves as a indicator of the economy and how the nation is doing trading. One of the main benefits is in the credit rating of the nation, a good credit rating means you pay lower interest rates in general when borrowing from international institutes.

(Imagine we borrowed $4bn from say the ADB @ 2% interest over 20 years compared to say $4bn @ 4% interest over the same period....the debt servicing would be huge, total repayment would be $5.967bn @ 2% vs $8.901bn @ 4%)

Ideally we need to retain about $40-$50bn in the comming years or roughly one years worth of imports. Remember it wasn't that long ago we have less then $1bn and risked defaulting....If that had happened, I doubt many institutes and countries would be eager to lend us credit.

 

[Mage]

31 billion? Thats almost half of the total Myanmarnese economy!









Yeah,and by Purchasing Power Parity,we are the 33rd largest economy on Earth!





Because Pakistanis thought that we would do better if we had stuck as Pakistan...

And why bring Myanmar here?

And foreign exchange reserve is probably not the best thing to go by when comparing which country is better. I'd rather compare gdp and hdi. But this thread is not the right thread for it.

 

[~Phoenix~]

And why bring Myanmar here?

They were saying shit and trolling in our section,so I tried to remind them of their place!

 

[damiendehorn]

They were saying shit and trolling in our section,so I tried to remind them of their place!

Yeah, I know we have troll infestion on the section, but let the nation speak for itself....have a little fun, but its not worth it to do more.

 

[~Phoenix~]

Yeah, I know we have troll infestion on the section, but let the nation speak for itself....have a little fun, but its not worth it to do more.

Bruh,but remember the thread "Bangladesh Coast Guard Seizes 900,000 Units of Yaba" ?? That was fun,untill I got banned hehe

 

[sbmc27]

Agreed Bhai...

Yeah, I know we have troll infestion on the section, but let the nation speak for itself....have a little fun, but its not worth it to do more.

 

[Cyberian]

Congratulations Bangladesh. You're doing very well. I pray you can sustain the 7%+ annual growth.

 

[My-Analogous]

I don't know much about economics. Can someone tell me why is having forex reserve important?

It is like your bank account and if you have more money you can able to buy more good staff or invest somewhere

31 billion? Thats almost half of the total Myanmarnese economy!









Yeah,and by Purchasing Power Parity,we are the 33rd largest economy on Earth!





Because Pakistanis thought that we would do better if we had stuck as Pakistan...

Do you ever visit Pakistan? we are happy that you are progressing well and in Pakistan that was hell difficult task due to location and India never allow East Pakistan flourish and Bangladesh can

 

[Species]

Ideally we need to retain about $40-$50bn in the comming years or roughly one years worth of imports. Remember it wasn't that long ago we have less then $1bn and risked defaulting....If that had happened, I doubt many institutes and countries would be eager to lend us credit.

We are recently seeing that ADB and World Bank are very much eager to lend us, proves that our economy is now free from risks!