Bangladesh Bank has announced a 10 ton purchase of gold from the IMF to hedge against currency volatility.
The acquisition is also a mark of prosperity for Bangladesh, says Beyond Brics:
For Bangladesh- – once derided as an economic basket-case, the acquisition also reflects the way it has managed to prosper during the economic crisis, thanks to its resilient garment exports and strong foreign exchanges remittances from citizens working overseas.
Bangladesh still has plenty of challenges ahead, mainly in raising state revenues for investment in infrastructure, which has emerged as a major bottleneck to its growth. Still, after nearly doubling in a year, Bangladesh’s foreign currency reserves in November 2009 hit $10bn, or nearly 5 month of imports, a fifteen-year high.
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