Dhaka Times Desk It has been reported that Bangladesh Bank is going to take several important decisions regarding the fear that economists are talking about financing the Padma Bridge.
It is known that the economists of the country are fearing a big pressure on the reserves due to the financing of the Padma Bridge. Bangladesh Bank has already started working on this matter with special importance. Bangladesh Bank has relaxed the conditions for buying three bonds in foreign currency to increase foreign exchange reserves. At the same time, the conditions for opening foreign currency accounts (FC accounts) have also been relaxed. Bangladesh Bank has issued a circular on July 10 relaxing the conditions for buying Wage Earner Development Bonds, US Dollar Premium Bonds and US Dollar Investments immediately after Prime Minister Sheikh Hasina announced the implementation of the country's largest infrastructure project with her own funding in the context of World Bank's cancellation of Padma Bridge financing. The circular also relaxed the conditions for opening FC accounts (Foreign Currency Accounts). The circular has been sent to all branches of Bangladesh Bank and chief executives of all banks.
Meanwhile, the central bank's reserves have once again fallen below 10 billion due to the latest accrual payments. On July 9, the Asian Caring Union (ACU) bill payment of $66.76 million raised the reserve to $9.8545 million. The previous day the reserve was 1 thousand 39 crore 25 lakh dollars. Earlier, the Prime Minister had announced in the National Parliament that there would not be much problem if one billion dollars were taken from the foreign currency reserves currently held in the Central Bank for the Padma Bridge. He also announced that 75 million dollar 'sovereign bonds' will be released to the expatriates. Khabar Dainik Yugantar.
It is known that the central bank has decided to increase foreign exchange reserves by popularizing wage earner development bonds, US dollar premium bonds and US dollar investment bonds to expatriates. According to the circular, the condition of endorsement by Bangladesh embassies abroad to buy Wage Earner Development Bonds, US Dollar Premium Bonds and US Dollar Investment Bonds denominated in foreign currency has been withdrawn. This decision has been taken to simplify the investment process in these bonds. According to the circular, currently Bangladeshi passport holders abroad and foreign nationals of Bangladeshi origin have to get their documents attested from Bangladesh embassies abroad to buy foreign currency (FC) accounts and bonds. This is inconvenient and expensive for investors. To solve this problem, it has been decided that instead of attesting the necessary documents from Bangladesh embassies located abroad, Bangladeshi passport holders will have the opportunity to purchase these bonds with a copy of the passport and foreign nationals of Bangladeshi origin with a copy of the passport with the 'Visa not required' seal obtained from the Bangladesh Embassy in the passport. Note that the World Bank wanted to give a loan of 1.2 billion dollars to Padma Bridge, one of the government's priority projects. However, the donor agency canceled the loan agreement on June 29, alleging corruption. It has also made it uncertain to get loans from other foreign companies. In the Cabinet meeting on July 9, it was decided to start the construction of Padma Bridge with our own funds.
It is known that the reserve remained below 1 billion dollars for almost four months from November last year to February 27. As a result, the central bank's reserves were under pressure for a long time. Then a few days later it stayed at ten billion. According to the data of Bangladesh Bank, at the beginning of September last year, the reserve of the central bank decreased to about 9 billion dollars. In October, it released billions of dollars again. However, from November to December it was around $9 billion. But it started increasing from mid-December. According to sources, the foreign exchange reserves fell to 9 billion last September after being above 10 billion dollars for 22 consecutive months without increasing the supply of dollars in proportion to the demand. Then in October it crossed 10 billion again. In November it came down again to 9 billion. It was in the 9 billion range throughout December. Bangladesh Bank's foreign exchange reserves fell to $9.5 billion after Akur payments were made in May. At that time, 73 million 2 million dollars was paid. Earlier on April 23, the reserves crossed $1 trillion. As a result, it was above ten billion dollars for three consecutive weeks. After the Aku payment in the first week of last March, the reserve fell below 10 billion. As a result, it exceeded 10 billion again in April after one and a half consecutive months.
According to the data, expatriates sent a record amount of remittances last December. In that month they sent about 1.14 billion dollars to the country. But the next month in January broke the record of December and set a new record. In January, expatriates sent a total of $1.21 billion. Meanwhile, in the last fiscal year 2011-12, expatriates sent a record 1,284,600,000 USD remittances. Its amount is 10.26 percent more than the previous financial year. At that time, the amount of reserves stood at 1 thousand 32 million 55 million 90 thousand dollars. According to sources, on February 27, the central bank released 10 billion in reserves. But in the first week of March, Bangladesh Bank had to make the payment. As a result it comes down. The Asian Clearing Union is an interregional current account settlement system through central banks on a multilateral basis.
Note that Bangladesh, India, Pakistan, Nepal, Bhutan, Sri Lanka, Myanmar, Iran and Maldives are members. Aku exchange or transactions are done through dollar and euro. Payments are made every two months for the transactions between these 9 Asian countries for the purpose of import and export. It is known that the central bank of the respective country makes these payments.
Whatever the situation may be now, there are several important decisions to be made if the Padma Bridge is to be self-financed. That's why economists say that budget expenditure should be reduced. Otherwise it will affect the overall economy of the country. Which has to get speed to handle.
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