Bangladesh Bank Implements Measures to Address Dollar Shortage
Staff Desk
Encourages Foreign Currency Deposits with High-Interest Accounts
In order to address the nation’s dollar deficit, the Bangladesh Bank established incentives for foreign currency deposits made into Resident Foreign Currency Deposit (RFCD) accounts. Open these accounts, deposit up to $10,000, and earn over 7% interest—beyond benchmark rates—for individuals returning from overseas travel. Benefits include the ability to send money internationally and the issuance of numerous cards that dependents can use for international medical and educational costs.
The goal of this programme is to reduce the scarcity of US dollars in circulation that results from domestic hoarding of foreign exchange. Beneficiaries of international remittances can also earn interest on foreign currency accounts for a period of three months to five years, ranging from 7% to 9%. Promoting the transfer of funds stored overseas into bank deposits is the aim.
People who travel frequently or have relatives studying abroad are encouraged by this move to deposit money without being subjected to a lot of inquiry. In order to mitigate the dollar shortage by providing higher-interest accounts and tackling the issue of cash hoarding, it aims to reroute public funds back into banks.
Tags: Bangladesh-Bank
