| Author | Golam Rabby Masud |
| Note | A project submitted in partial fulfillment of the requirements for the
degree of Professional Masters in
Banking and Finance, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | Bangladesh has experienced increases in the level of foreign reserves as well as increases in remittance, export and import size. Foreign reserve has increased to 22 billion USD at the end of 2014 which was 2.7 billion USD in 2004. In the same time period, export, import, remittance and foreign direct investment have increased by 15.5%, 15.23%, 17.73% and 21.28% respectively. For effective reserve management, the monetary authority needs to know what factors generate reserves in the economy and analyze the level of contribution of those factors. There are some strong components which cause directly to increase or decrease foreign exchange reserve and they have also some effects. This paper intends to find out what are the reasons of recent large amount of foreign reserves of Bangladesh. In this research work correlation and regression analyses are used to find out the impact of export, import, remittance and FDI on foreign exchange reserve of Bangladesh. This paper examines the linkage between foreign reserve and export, import, remittance and foreign direct investment of Bangladesh for last ten years. The volume of export and remittance are found to have significant positive effect on changes in the amount of reserve. The paper suggests that the amount of exchange reserves increase, it may affect the demand for imports since more funds will be available for imports. And finally it is found that foreign direct investment has no significant impact on the amount of reserve in case of Bangladesh. The result of this study suggests that Bangladesh should promote remittance and export sector of economy for a sound reserve growth. |
| Year | 2015 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Donyaprueth Krairit;Tanatat Puttasuwan |
| Examination Committee(s) | Venkatesh, Sundar ;Badir, Yuosre |
| Scholarship Donor(s) | Bangladesh Bank (Central Bank of Bangladesh) |