Govt raises US dollar bond yield rates

The government has raised the yield rates of US Dollar Premium Bond and US Dollar Investment Bond by up to 2 percentage points to help boost inflow of the foreign currency in the country.

The Internal Resources Division under the Ministry of Finance issued a circular on Sunday.

With the enhancement, the profit rate of US Dollar Premium Bonds has been raised to 6.5% from 4.5% after one year of investment up to $100,000, 7% from 5% after two years and 7.5% from 5% after three years of maturity.

On the other hand, the yield rate of US Dollar Investment Bonds has been enhanced to 5% from the existing 4% after one year of investment up to $100,000, 6% from 4% after two years and 6% from 5% three years of maturity.

The yield rates on the two bonds have also been raised proportionately for their investment beyond $100,000 for one, two and three-year terms.

It is expected that the enhancement of yield rates on investment of the foreign currency would help attract expatriate Bangladeshis to invest more in the country, thus giving a boost to the country's foreign currency reserve, which has now been under pressure.