The New Nation - Internet Edition

Staff Reporter

Foreign exchange reserve is expected to touch 5.5 billion U.S. dollars by early November for the first time due to higher inflows of remittances from Bangladeshis working abroad, increased export earnings and aid disbursement by the World Bank.

The WB is likely to release the International Development Association (IDA) credit worth 75 million U.S. dollars shortly, sources in the Bangladesh Bank said.

The government has already signed a loan agreement for 75 million U.S. dollars with the IDA of the World Bank to help finance part of the fiscal 2007-08 (July 2007-June 2008) resource gap incurred as a result of the floods.

A review of Bangladesh Bank statistics showed that the reserves continued to increase as remittance inflows and export earnings have increased in the last two years and a half.

The foreign exchange reserve rose to 5.206 billion U.S. dollars Wednesday following increased flow of remittances, reasonable export growth and a normal import trend, official sources said.

Expatriate Bangladeshis remitted about $6 billion in fiscal 2006-07, a rise of about 22 percent from the previous fiscal year. Export earnings grew by about 20 percent.

The flow of inward remittance jumped by around 26 percent in September over August due to the advent of the holy month of Ramadan as well as Eid-ul-Fitr festival.

The remittances from Bangladesh nationals working abroad were estimated at 592.78 million U.S. dollars in September, up 25.86 percent from August.