Dhaka, Bangladesh (BBN) - The government has taken a number of measures to boost sales of two dollar bonds and the local currency-denominated Wage Earner Development Bond aiming to increase the country’s foreign exchange reserve, officials said.
As part of the measures, the local TV channels will air advertisements by the end of next month to create awareness among non-resident Bangladeshis (NRBs) across the world.
The bonds are: US Dollar Premium Bond, US Dollar Investment Bond and Wage Earner Development Bond.
"The central bank in now working on expediting sale of these bonds aiming to increase inflow of the dollar currency, which will be used in different development projects in the country," a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
The NRBs would be able to earn more through investing their money in the risk-free savings instruments due to their high interest rates, the central banker said. The interest rates on deposits in the US dollars are hovering between zero and below 1.0 per cent in the global market.
The finance ministry has already relaxed provisions on the three bonds allowing NRBs to buy these without attestation by any Bangladesh embassy.
The maturity period for the US dollar investment bond is three years since the date of issuance.
The bondholder will be entitled to draw interest on a half-yearly basis at the fixed rate of maximum 6.5 per cent per annum in the US dollar.
The US dollar premium bond has a maturity period of three years from the date of issuance.
The bondholder will be entitled to draw the interest on a half-yearly basis at the fixed rate of maximum 7.5 per cent annum in Bangladesh Taka (BDT) based on the USD/BDT exchange rate, according to the existing provisions.
The government introduced the bonds on November 1, 2002 to offer the NRBs and also Bangladeshi nationals.
Denominations of the bonds are US$ 500, $1,000, $5,000, $10,000 and $ 50,000.
Bangladeshi nationals working abroad may purchase the Wage Earner Development Bonds in the foreign exchange.
Denominations of the bond are BDT 25,000, BDT 50,000, BDT 100,000, BDT 2,00,000 and BDT 5,00,000.
A bondholder will be entitled to receive a profit of 11.80 per cent from such a bond after five years since the date of issuance.
BBN/SSR/AD-16July12-10:14 am (BST)
