{"id":11358,"date":"2024-10-26T23:19:33","date_gmt":"2024-10-26T19:49:33","guid":{"rendered":"https:\/\/dailyenglishtimes.com\/?p=11358"},"modified":"2024-10-26T23:19:33","modified_gmt":"2024-10-26T19:49:33","slug":"why-has-there-been-a-decline-in-the-foreign-exchange-reserves-during-the-last-three-months","status":"publish","type":"post","link":"https:\/\/dailyenglishtimes.com\/?p=11358","title":{"rendered":"Why has there been a decline in the foreign exchange reserves during the last three months?"},"content":{"rendered":"

Md. Fahad Hossain Rana<\/strong><\/h4>\n

According to the Bangladesh Bank\u2019s monthly reserve data, there is a consistent decline<\/p>\n

shown between the July to September. In July, the reserves stood at $25,823.60 million,
\nwhich dropped to $25,580.80 million in August, reflecting a decline of $242.80 million or –
\n0.94%. The decrease accelerated further in September, with reserves falling to $24,863.00
\nmillion, marking a sharper decline of $717.80 million or – 2.81%.
\nReasons for this fall:
\nThe primary reason for this decline is the lowest remittance inflow and a decline in RMG
\nexports. As remittance is the main source of earning foreign currency, in July the inflow was
\nonly $1913.77 million US dollars, which was 24.61% less than the previous month. An
\ninternet blackout due to the student’s quota reform movement accounts for this fall in
\nremittance. In the RMG industry, around 10% dropped in the work orders seen from
\ninternational retailers and brands for the autumn and winter seasons compared to the past
\ndue to the nationwide student movement and labour unrest. There are several other
\nreasons for continuing the trend. Those are heavy import dependency and huge highinterest foreign debt taken by the former Awami League government.
\nRecommendations:
\nMy recommendations for the government to stabilize the foreign exchange reserve are to
\nensure full-fledged inflow remittance by reducing transaction costs and eliminating the
\nHundi and illegal money transfer systems. The government should also strive to normalize
\nthe political situation in the country and implement a strategy to enhance the business
\nenvironment for foreign investors by simplifying regulations, providing tax incentives, and
\nfocusing on sectors with high FDI potential.
\nWritten By,
\nMd. Fahad Hossain Rana
\nStudent at Dept. of Economics,
\nJaggannath University<\/p>\n","protected":false},"excerpt":{"rendered":"

Md. Fahad Hossain Rana According to the Bangladesh Bank\u2019s monthly reserve data, there is a consistent decline shown between the July to September. In July, the reserves stood at $25,823.60 million, which dropped to $25,580.80 million in August, reflecting a decline of $242.80 million or – 0.94%. The decrease accelerated further in September, with reserves falling to $24,863.00 million, marking a sharper decline of $717.80 million or – 2.81%. Reasons for this fall: The primary reason for this decline is the lowest remittance inflow and a decline in RMG exports.<\/p>\n","protected":false},"author":1,"featured_media":11359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"limit_modified_date":"","last_modified_date":"","rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[],"class_list":["post-11358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/posts\/11358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11358"}],"version-history":[{"count":1,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/posts\/11358\/revisions"}],"predecessor-version":[{"id":11360,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/posts\/11358\/revisions\/11360"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=\/wp\/v2\/media\/11359"}],"wp:attachment":[{"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyenglishtimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}