HIGHER reserve of foreign exchange of Bangladesh has been reported in the press. The Bangladesh Bank has officially shown the reserve at 4.57 billion US dollars, highest ever in Bangladesh. The same reserve has been accumulated with earnings from export of different goods to countries in Europe and America. Above that, direct remittances from migrant workers of Bangladesh has augmented the reserve. These people, so far, used both formal and non-formal channels for sending money to their families at home. The recent decision of the central bank is to obtain collaboration of banks in countries where migrant Bangladeshis are working and earning their wages has been a step in the right direction. It has augmented transfer of foreign exchange through banking channels and reduced the use of hundees which keep the inflow of foreign exchange beyond official records.
Those in the field of banking have expressed their opinion on the need to upgrade the existing guidelines for flow of remittances from abroad. The trend of management of remittances via hundees from abroad has to be contained. The use of foreign exchange resources may be done under a coordinated plan. The earnings may be diverted to investment in different sectors of the economy. It is worth noting that foreign exchange reserves stood at around one billion US dollars in 2001 and the concerned quarters were wondering about the after-effects of such downtrend. The earning of foreign exchange showed an uptrend during fiscal years 2002 to 2006, when payment in foreign currencies was made mandatory. The Asian Clearing Union extended support to Bangladesh and channelled remittances from migrant worker and exporters. The Bangladesh Bank has of late instructed banks to enter into deals with banks in different countries for facilitating remittances of earnings of workers and traders.
The uptrend in foreign exchange earnings should be sustained with necessary supportive decisions of the government. The trade deals with foreign countries importing medicines, garment products, traditional items like raw jute, and even fish products, have to be upgraded. Along with that, Bangladeshi products should be shown at exhibitions in different countries. The flow of migrant workers of Bangladesh should also be put on the plinth of certainty, when necessary, by extending official support. The trend in earning more of foreign exchange may be strengthened by streamlining both export and facilitating the movement of migrant workers on jobs abroad. An evaluation of the present record forex reserve would also unveil the fall in imports. Adequate imports would have reduced the foreign exchange build up to some extent and given relief to consumers who are suffering for price hike of almost all items. While a large reserve is always a pleasant thing to know about as it helps debt servicing and import financing, proper utilisation of the same to keep the wheels of the economy moving and give consumers comfort is of utmost importance.
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