The country’s foreign exchange reserves will be invested in infrastructure development, including the Padma Bridge Project, said Bangladesh Bank Governor Atiur Rahman.
“The central bank took preparation for investing reserves since the government announced to build the Padma Bridge with its own fund,” he told the launching ceremony of the central bank’s five-year Strategic Plan for 2015-2019, the second of its kind.
The developers will be provided with financing from the reserves at only 2% rate as apprised the function held at Bangladesh Bank Training Academy (BBTA) in the capital yesterday.
Addressing the function, Deputy Governor SK Sur Chowdhury said a country needs foreign exchange reserves to meet up its import costs for a period of minimum three months.
At present, Bangladesh has US$26bn of reserves – enough to meet the import costs of seven months. As a result, the central bank plans to invest reserves in the Padma Bridge project.
The central bank has taken the new strategic plan consisting of 14 strategic goals – expected to be achieved through a total of 105 objectives, which would essentially be attained by 320 action plans in the medium and long run.
Earlier, in May 2010, Bangladesh Bank had announced the first five-year strategic plan, aiming to add an impetus to uphold its mandate as a central bank of the country and the Vision 2021 of the government as well.
The second strategic plan focused on six goals – balanced and coordinated monetary policy; supervision and regulation for ensuring financial stability; optimisation of human capital; promoting more liberalised foreign exchange regime; socially responsible financing and inclusive growth; and enterprise resource management and effective communication and image building.
“We have achieved 94% of the first strategic plan despite adverse environment,” claimed Atiur.
He said it was challenging for the central bank to formulate monetary policy and coordinate financial policies amid global recession and the country’s internal unrest.