Bangladesh Bank’s earnings from its foreign currency reserves surged by an impressive 108 percent year-on-year, reaching Tk 6,000 crore during the fiscal year 2022-23, according to the central bank’s annual report. This notable increase was attributed to foreign currency revaluations and a considerable amount generated from the central bank’s sale of USD.
In the fiscal year 2022-23, Bangladesh Bank injected approximately $14 billion into banks using its foreign exchange reserves. The central bank’s financial accounts for the previous fiscal year were officially ratified in a board of directors meeting led by Bangladesh Bank Governor Abdur Rouf Talukder.
Both foreign and local currency-denominated financial assets contributed to the augmented earnings, as highlighted by Md Mezbaul Haque, the Executive Director and Spokesperson of Bangladesh Bank, in a statement to The Daily Star post the meeting.
This augmentation in earnings resulted in a substantial rise in the central bank’s net profit. Specifically, in the fiscal year 2022-23, Bangladesh Bank recorded an income of Tk 15,000 crore against expenses of Tk 4,252 crore, according to its annual financial statements.
Consequently, the net profit of Bangladesh Bank soared to Tk 10,748 crore, marking an 86 percent increase compared to the previous fiscal year of 2021-22.
Haque mentioned that a significant portion of the net profit, specifically Tk 10,652 crore, has already been allocated to the government. Among the total income, Tk 9,000 crore was derived from local currency-based financial assets, while the remaining Tk 6,000 crore originated from foreign currency-based financial assets.
Breaking down the income generated from local currency-based financial assets, approximately Tk 7,000 crore was garnered through interest on loans provided to the government. The remaining Tk 2,000 crore was acquired from interest related to repurchase agreements and liquidity support facilities.
