Banks banned from buying vehicles, cost must be reduced by 50%

The government has issued this directive as part of several initiatives to reduce import costs

Bangladesh Bank has banned the purchase of all types of vehicles by banks amid the current economical condition.

Besides, entertainment, travel, computer and related electrical equipment, furniture and other discretionary expenses have been asked to reduce by 50%.

On Wednesday, the Banking Regulation and Policy Department of Bangladesh Bank issued instructions in this regard. 

According to the notice, the government issued this directive as part of several initiatives to reduce import costs.

The macro economy is currently somewhat unstable due to the dwindling foreign exchange reserves of the country. 

Import expenditure increased by 39% to $75.40 billion from July to May of the 2021-22 fiscal compared to the previous fiscal year.

Remittance flows during this period fell by 15% to $21.3 billion compared to the previous year. 

Last week, the country's foreign exchange reserves stood at $39.67 billion. Reserves stood at $46.15 billion in December last year.