The Bangladesh Bank has requested private banks’ assistance to clear approximately $2 billion in overdue government import payments to state-owned banks. In a recent meeting, central bank officials asked private banks to sell $50 million daily to state-owned banks to help clear these payments, though a final decision is pending.
Clearing these arrears is expected to improve relations with foreign correspondent banks and enhance credit limits, while also reducing costs for domestic banks. The central bank is negotiating with the IMF for an additional $3 billion loan to boost reserves but has decided against selling dollars from reserves for now, given recent flood-related import needs.
The central bank also plans to introduce measures to shift $8-10 billion from informal remittances to formal channels and is considering allowing the dollar rate to be market-determined to address inflation concerns. Bankers are advised to establish a Treasury Forum for better coordination.
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