In a move that is expected to lessen the pressure on forex reserves in the country, the Export Development Fund, which is formed to help the exporters with foreign currency on relaxed conditions, has dropped by US $ 1 billion to US $ 6 billion.
This is as per reports, which maintained the information was shared Bangladesh Bank spokesman Mezbaul Haque who added businesses were borrowing less from the foreign-currency fund as Bangladesh Bank formed an alternative fund in the local currency.
It may be mentioned here as part of the EDF, which was up in 1989 with a tiny amount of reserves that gradually increased to US $ 7 billion, exporters can borrow loans at a 4 per cent interest rate even if they can pay off their loans from the earnings from their exports and when the export earnings are wired, the bank deducts the loan amount and converts the rest of it into the Taka while also transferring the amount to the customer.
