Something very unusual beyond our knowledge  is taking place over foreign exchange reserves, said Dr Zahid Hussain, former lead economist at the World Bank's Dhaka office.

He said it has become very difficult to know how much foreign currencies are entering Bangladesh and how much are flying away from the country. "We can't calculate it with the foreign exchange reserves. It has been negative quite some time. It means something very unusual is taking place beyond out knowledge."

"The country's forex reserves have not yet reached an alarming state but it is concerning," he said while talking to reporters after delivering address at the annual conference of the International Business Forum of Bangladesh (IBFB) in the capital's Gulshan Club in Dhaka on Wednesday (October 4).Bangladesh Bank sells off more than $1 billion, he said, adding, "If this continues to do so, the reserves will eventually run out."

Then, the currency exchange rate cannot be contained, as it is now. It will go out of control, he remarked.Bangladesh's foreign exchange reserves stood at $21.15 billion on Tuesday in line with the IMF reserves calculation method, according to the Bangladesh Bank's data.

Every month, the Bangladesh Bank sells off more than $1 billion, he said, adding, "If this continues to do so, the reserve will eventually run out."Then, the currency exchange rate cannot be contained, as it is now. It will go out of control, he remarked.

Bangladesh's foreign exchange reserves stood at $21.15 billion on Tuesday in line with the IMF reserve calculation method, according to the Bangladesh Bank's data.Dr Zahid Hossain said the country's foreign exchange reserves are now below $18 billion. The foreign exchange reserves are decreasing due to the deficit in balance of payment (BoP). Deficit in balance of payment has created due to the increase in fuel oil prices in international market and rise in dollar's exchange rates. As a result, its implication has fallen on the economy. It has not only led to the decrease in Bangladesh currency rates, but also led to the rapid falling of foreign exchange reserves maintained with the Bangladesh Bank.

Criticising the Bangladesh Bank's monetary policy, Dr Zahid Hussain said it is contractionary in one hand, and expansionary on the other. "It can't be explained in any way. Besides, the government's borrowing from banks is increasing though the flow of credit to the private sector is decreasing."

Moreover, the former lead economist of the World Bank mentioned about paying of the additional cost to import fuel oils. It has also created an impact on the country's macroeconomic situation.

At the conference, Indian High Commissioner to Bangladesh Pranay Kumar Verma was present as the chief guest.

Chaired by IBFB President Humayun Rashid, the inaugural session of the conference was also addressed by IBFB Vice President Lutfunnisa Saudia Khan and former president Mahmudul Islam Chowdhury.