Overseas help sees greater utilisation

The usage of overseas help for growth tasks in Bangladesh jumped 49 per cent year-on-year in July, offering some reduction to the federal government amid the continued stress on the nation’s overseas trade reserves.

Bangladesh’s growth companions supplied $488 million within the first month of the present fiscal yr, up from $328.66 million throughout the identical month a yr in the past, as per information from the Financial Relations Division (ERD).

The federal government repaid overseas money owed amounting to $179 million within the month, down 3.3 per cent year-on-year from $185.11 million.

The nation’s overseas trade reserves stood at $39 billion on August 24, equal to five.72 months of import funds, whereas it was $48 billion on the identical day final yr, Bangladesh Financial institution information confirmed.

In keeping with the Worldwide Financial Fund and the World Financial institution, a foreign exchange reserves price about three months of import funds are a snug place for Bangladesh throughout regular conditions, however the equal of 10 months is required for emergency conditions.

The federal government needed to spend extra native currencies on overseas debt repayments in 2021-22 as a result of taka’s devaluation towards the US greenback. As such, the federal government needed to pay Tk 1,680 crore towards $179 million within the present fiscal yr, whereas it was Tk 1,570 crore towards $185 million within the final fiscal yr.

The federal government estimated the greenback trade price for repaying money owed can be Tk 86 when making ready this yr’s nationwide funds, however the official trade price has gone previous Tk 95.

The taka has misplaced worth towards the American buck at the very least by 13 per cent in August in comparison with a yr in the past on the interbank overseas trade market, whereas importers should depend 25 per cent extra to purchase a greenback.

It is because abnormally excessive import payments, pushed by escalated international commodity costs, have exceeded the mixed receipts within the type of export earnings and remittance stream, making a scarcity of US {dollars}.

Among the many nation’s growth companions, Japan disbursed the best quantity of overseas help with $200.14 million for quite a lot of mega tasks, together with the Matarbari coal-fired energy plant, Bangabandhu Sheikh Mujib Railway Bridge, and third terminal on the Hazrat Shahjalal Worldwide Airport.

China disbursed the second highest with $102 million, whereas the Asian Growth Financial institution supplied $64 million, India $58 million, the World Financial institution $22 million, and Russia $4 million.