Bangladesh’s net forex reserve below $18 billion: Zahid Hussain

Bangladesh's net foreign currency reserves would be less than $18 billion if the central bank's liabilities are considered, said Zahid Hussain, a former lead economist of the World Bank's Dhaka office, today.

He said the central bank is regularly publishing its gross foreign reserves in line with the formula of the International Monetary Fund (IMF) and it now stands at $21 billion.

If the central bank's liabilities are taken into account, then the reserve would be less than $18 billion, he said.

"Although the reserve situation has not reached an alarming level yet, it is now a matter of concern. This is because every month, Bangladesh Bank is selling more than $1 billion worth of US currencies."

"We are not at the satisfactory stage that we had been in the recent past."

The economist warns that if the use of the forex reserve continues at the current rate, the country will run out of international currencies at some point.

"Then the exchange rate can't be contained at the current level; it will go out of control."

Hussain was talking to reporters after taking part at the annual conference of the International Business Forum of Bangladesh (IBFB) at Gulshan Club in Dhaka.

Indian High Commissioner to Bangladesh Pranay K Verma was present at the event as chief guest at the conference, which was chaired by IBFB President Humayun Rashid.