Bangladesh Bank fears that pressure on the country’s foreign exchange reserves will increase if the government approves overseas equity investment by the local firms. The central bank feared the pressure on foreign exchange reserves as Akij Group, Nitol Niloy Group and Ha-Meem Group are now interested to invest overseas. As funds are being spent to import fuel oil and capital machinery along with consumer products, the growth foreign exchange reserves becomes slow. Foreign exchange reserves now stood at around $33bn — enough to honour at least 7-8 months’ import bills. Besides, the government will form a $10bn sovereign funds from the Bangladesh Bank foreign exchange reserves which also put a pressure on foreign exchange reserves.

Source: Dhaka Tribune May 02, 2017 19:18 UTC