Bangladesh鈥檚 foreign exchange reserves, according to International Monetary Fund guidelines, plunged by $1.3 billion (more than Tk 15,000 crore) in July compared with that in the previous month due to poor remittance inflow and export earnings amid the ongoing unrests in the country.
According to Bangladesh Bank data, foreign exchange reserves dropped to $20.48 billion on July 31 from $21.78 billion on June 30.
With the current dollar rate in banks at Tk聽118 each, the decline of $1.3 billion is equivalent to Tk聽15,328 crore.
In May, reserves had plummeted to $18.64 billion, but jumped to $21.78 billion in June due to the country receiving $1.15 billion from the International Monetary Fund and $900 million from other sources in loans.
However, in July, reserves fell sharply as remittance and export earnings declined due to the current turmoil and curfew in the country, BB officials said.
The central bank data showed that remittance inflow declined by 25 per cent to $1.9 billion in July compared with that of $2.54 billion in June.
The figure was $1.97 billion in July 2023.
The government imposed a curfew starting at midnight on July 19 amid unrests over quota reform protests.
Since July 16, more than 200 people have been killed and several thousand injured in the protests.
An internet blackout beginning on July 18 in the country amid the unrests further halted digital and mobile financial services, bankers said.
The curfew was relaxed on July 24 to allow offices and banks to operate for a limited time. However, all offices resumed normal schedules on July 31.
A partial restoration of broadband internet began on the evening of July 23, with gradual expansion of services. Mobile internet services were restored on July 28.
Amid the nationwide unrests, the dollar rate increased to Tk聽125 each on the kerb market on July 31 and became scarce in the country鈥檚 money exchange houses on August 1.
The net foreign exchange reserve reached $15.47 billion on July 31.
According to the Bangladesh Bank鈥檚 conventional valuation, reserves also dropped to $25.9 billion on July 31 from $26.81 billion on June 30.
The exchange rate per dollar was Tk 84.81 in June 2021, Tk聽93.45 in June 2022 and Tk聽106 in June 2023.