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Friday June 18th, 2021
Economy

Bangladesh Bank approves US$200mn currency swap for Sri Lanka: report

ECONOMYNEXT – Bangladesh Bank has approved a 200 million US dollar currency swap with Sri Lanka’s central bank, which will be backed by a government guarantee, a media report said.

Dhaka Tribune newspaper quoting a central bank official said the Bangladesh has in principle approved the deal but it has to get government nod.

“..[T]he Bangladesh Bank approved in principle a $200 million currency swap proposal with Sri Lanka, a country struggling to maintain a moderate foreign exchange reserve,” the Dhaka Tribune newspaper said.

“However, the currency swap agreement will be finalized after being vetted by the government, a senior central bank official said after the meeting.”

“Against the fund, Sri Lanka would keep the same amount of its local currency at the Bangladesh Bank along with a government guarantee.”

Sri Lanka initiated the swap with Bangladesh when Prime Minister Mahinda Rajapaksa visited Bangladesh accompanied by State Minister of Money and Capital Markets Nivard Cabraal.

Cabraal also visited Middle Eastern nations nation ahead of a Sri Lanka Development Bond maturing in May. (Colombo/May26/2021)

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