Prime Minister Sheikh Hasina Prime Minister Sheikh Hasina on Monday ordered the central bank to explore the possibilities of lending out foreign exchange reserves to public sector development projects, planning minister said.
She argued that the additional reserves after the 3-month equivalent import payments could be used for lending to the development projects of the government, the planning minister said after the meeting of the Executive Committee of the National Economic Council or ECNEC.
The PM directed the central bank when the ECNEC were approving nine development projects on Monday.
Referring the PM, MA Mannan said since the Bangladesh's forex reserves have hit new highs of over US$36 billion, the PM gave the direction to the Bangladesh Bank to study the option of lending.
He said he had agreed with the PM and requested her that it could be lending in US Dollar so that the borrowers can repay the money in greenback.
But since the issue is sensitive in terms of country's financial and monetary discipline, the BB had been asked to work out on this issue, Mr Mannan said.
Bangladesh borrows nearly US$7.0 billion from external sources, including the World Bank, the Asian Development Bank, Japan and other multilateral and bilateral donors to finance the development work under the annual development programme or ADP every year.
Mr Mannan said since the government borrows money from local banks in local currency it could also take out credit from the reserves in foreign currency for the development of the country.
It would add value to the development work in Bangladesh, he added.
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