Metropolis Report-
The government has increased the interest rates of two US dollar-denominated bonds by up to two percentage points to attract investments from non-resident Bangladeshis (NRBs) to boost inflows of the greenback.
The US Dollar Premium Bond and US Dollar Investment Bond’s interest rates were restructured yesterday by the finance ministry’s Internal Resources Division.
The upward adjustments are intended to attract NRBs to strengthen the dollar’s flows and boost foreign exchange reserves, which have declined over the previous 2.5 years.
The interest rate on investments made up to $100,000 in the US Dollar Premium Bond will be 6.50 percent to 7.50 percent in the first year and third year, respectively, based on the new rates. From 4.50 percent to 5.50 percent, it is higher.
Up to $500,000 worth of investments will yield 5 to 6 percent, from 3.50 to 4.50 percent.
Up from 2.50 to 3.50 percent, the return on investments exceeding $500,000 will be 4 to 5 percent.
For an investment of up to $100,000 in the US Dollar Investment Bond, the interest rate will range from 5.50 percent to 6.50 percent upon maturity in the first to third year. Before the reorganization yesterday, it was 4–5%.
Interest rates on up to $500,000 invested will range from 4 to 5 percent, up from 3 to 4 percent.
The return on investments exceeding $500,000 will increase from 2 to 3 percent to 3 to 4 percent.
As of January 10, the foreign exchange reserves were $20.18 billion, down from $40.7 billion in August 2021.
