Bangladesh currently has sufficient foreign exchange reserves to sustain imports for the next four months, Central Bank Governor Dr. Ahsan H. Mansur stated during an event in Dhaka on Saturday. Speaking at the "Branding Bangladesh" program held at a local hotel, he assured that the economy remains stable but emphasized the importance of vigilance in managing financial and economic policies.

Dr. Mansur explained that foreign currency reserves have stabilized, alleviating concerns about potential economic turbulence. Over the last five months, remittance inflows have increased by $3 billion, while export earnings have risen by $2.5 billion. This improvement in inflows has significantly contributed to maintaining a steady reserve position.

He attributed the recent stability in the financial system to better governance in the banking sector and efforts to curb money laundering. Despite ongoing political uncertainty, remittance flows have reached unprecedented levels, demonstrating the resilience of the country’s economy.

The Governor also noted that the government’s incentive of a 2.5% cash reward for remittance sent through official banking channels has been instrumental in driving record remittance figures. However, this measure has incurred an annual cost of Tk 7,000 crore for the government. He urged expatriates to send money directly through legal channels, bypassing informal avenues that contribute to inefficiencies in the financial system.

Dr. Mansur expressed concerns about the growing trend of remittance being routed through Dubai, which has recently overtaken Saudi Arabia as the top source of remittance for Bangladesh. While this indicates a shift in global remittance dynamics, he cautioned that the practice of routing funds through Dubai poses risks, as certain entities in Dubai exploit currency exchange rates and manipulate remittance transactions.

In December alone, Bangladesh received $2.63 billion in remittance, marking the highest monthly inflow in the nation’s history. The Governor emphasized that this achievement underscores the critical role of remittance in sustaining the economy during challenging times.

While foreign exchange reserves currently provide a buffer against immediate shocks, Dr. Mansur warned that sustaining stability requires long-term structural reforms. Efforts to ensure transparency in the banking sector, improve regulatory oversight, and address external vulnerabilities must continue to secure the economy against future uncertainties.

The Governor concluded by reiterating the importance of disciplined economic policies, emphasizing that the current reserve position offers reassurance but does not eliminate the need for caution and proactive management of financial risks.