In a major move that could ease the current dollar crisis facing Bangladesh, the country’s central bank, Bangladesh Bank, has asked all commercial banks to provide exporters 100 per cent interest for encashing termed deposits kept in Export Retention Quota (ERQ) accounts, even before they are matured.
As per reports, a circular issued by the Bangladesh Bank in this direction lately, the commercial banks have to give the exporters 100 per cent interest as per agreement notwithstanding if the term of the ERQ accounts deposits is completed or not, even if the notification issued by the Bangladesh Bank maintained 50 per cent of the deposit held in the ERQ accounts should be encashed or released to the market to ease the dollar crisis Bangladesh is faced with.
It may be mentioned here, exporters in Bangladesh deposit a certain portion of their income in the ERQ accounts against their exported goods and services and owing to the current dollar crisis, they have been given a facility to redeem dollars from the ERQ accounts before maturity.
