Bangladesh Bank sets 4 to 5pc interest in dollar deposits

The banks in the country will provide four to five per cent interest for deposit in dollars as non-resident foreign currency.

However, the rate of interest will fluctuate as per the benchmark rates.

In a gazette notification, Bangladesh Bank (BB) said the newly set interest rate will be added to the benchmark rates of non-resident foreign currency.

A 2.25 per cent of interest will be applicable to one to three-year long dollar deposits along with benchmark rates.

The interest rate will be 3.25 per cent along with benchmark rates if the deposit is made for three to five years.

An official of the central bank told Prothom Alo that this initiative will lure Bangladeshi migrants to deposit money to their accounts as non-resident foreign currency, resulting in the increase of dollar deposits to the banks.