The Bangladesh Bank (BB) has agreed to calculate its forex reserves following the international standard as advised by the International Monetary Fund (IMF).
As per IMF suggestions, the central bank must follow the standard where spending for export development fund (EDF), loan to Sri Lanka and financing domestic projects from reserves must be excluded, but the process will be slow considering it as a national sensitive issue, an official said on Sunday.
An executive director of Bangladesh Bank, preferring anonymity, said that in principle, the central bank decided to follow the global standards to calculate the amount for foreign reserves.
If the process is followed, the reserves will be reduced to $27.8 billion from $35.8 billion as declared earlier, he said.
A visiting IMF delegation was informed that Bangladesh Bank has taken a policy decision to publish accounts in line with international standards.
In addition to following the IMF’s procedures, the accounts on the basis of the existing procedures will also be published.
Sector insiders say most of the world’s foreign exchange reserves are calculated according to the IMF’s Balance of Payments and International Investment Position manual.
But Bangladesh calculates net reserves and total foreign exchange reserves when it publishes the amount for foreign currency reserves.
Funds provided to various sectors including EDF are excluded from the net calculation.
Bangladesh Bank publishes the gross or total account of reserves.