<div style="text-align: justify; "><span style="font-size: 1rem;">Macroeconomists and policy analysts have listed paying deferred dues, the tendency of FDI profits taken abroad by investors, declining inward remittance flow, capital flight, and money laundering as reasons behind Bangladesh's foreign exchange reserves slipping to US$ 21.15 billion.</span><br></div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Bangladesh’s foreign exchange reserves stood at $21.15 billion on Tuesday in line with the IMF reserve calculation method, Bangladesh Bank shared the information on Wednesday.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">According to the central bank, a week ago on September 21, the reserve was $21.45 billion. The forex reserves dipped by $300 million to $21.15 billion within a few days.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Dr Debapriya Bhattacharya, a macroeconomist and public policy analyst, told UNB that this happened due to deferred payments of fuel import and FDI profits of the western investors being taken abroad.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">He said Bangladesh’s imports, particularly fuel, in some cases may close unless deferred dues are cleared. Foreign investors are also under pressure to take their profits abroad considering political uncertainty.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Economist Dr Ahsan H Mansur told UNB that the declining inward remittance flow and rise in money laundering are contributing to depleting reserves.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">He said the situation would not improve before the next national election as there is uncertainty. If a stable government is formed through a credible election, then the economy will recover fast due to improved confidence level, he pointed out.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">According to the central bank, the gross reserves (which include EDF funds and loans from reserves) of the country at the beginning of September were $29.23 billion.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">At the beginning of Wednesday (September 27), it decreased to $27.06 billion.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Currently, the average monthly import expenditure is $6 billion. According to this, $18 billion will be required to meet three months of import demand. That is, with the current reserves, the import expenses of little over three months can be met under the Bangladesh Bank policy of a controlled spending system. A further reduction in imports will cover four months of import expenses.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">According to sources, the inflow of dollars in the market has decreased due to a decrease in export earnings and remittance flow. Meanwhile, new LC has to be opened and the debt of the previous LC has to be paid. Apart from this, foreign loans and other debts also have to be paid.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The Asian Clearing Union (ACU) dues for the months of September and October have to be paid in early November. Then the reserves could fall further.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The second installment of the IMF loan could be waived by $480 million in November.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">In addition, some loans from the World Bank and Asian Development Bank may also be exempted at that time. Then the foreign exchange reserve may increase slightly. By the end of the year, Bangladesh’s export earnings are expected to increase. UNB</div><div style="text-align: justify;"><br></div><div style="text-align: justify; ">bnbd24/kh</div>