Qatar plans to park $1.8b in BB
Qatar has proposed to invest its currency worth of $1.8 billion in the Bangladesh Bank.
The central bank will share profits with the Gulf nation from investing the fund abroad, a high official said.
Bangladesh received such a proposal from abroad for the first time in 25 years.
The proposal was made Sunday when a 10-member team led by Qatar's assistant minister for international cooperation affairs met BB officials in Dhaka.
BB officials had a detailed discussion with the Qatari delegation on the investment proposal.
The Qatari team enquired about the BB's foreign currency reserve (around $10 billion now), where the BB makes investment abroad and how much profit it gets against those investments.
The BB official told The Daily Star that the central bank makes a handsome amount of profit every year from the investments it makes abroad.
The investment of BB's reserve ranges from one day to one month or more. As a result, the rate of interest varies.
The official said the profit to be given to Qatar will be determined on the basis of the time for which it deposits the money with the BB.
He said Qatar will convey its final decision regarding the investment during Prime Minister Sheikh Hasina's visit to that country from today.
The BB official also said, if Qatar deposits the money with the BB, its reserve will increase and it will have a positive impact on the balance of payments.
The official said it will also bring a better result regarding Bangladesh's country rating.
He said, after 1987 this is the first time Bangladesh got such a proposal. Before 1987, some Middle East countries invested small amounts of money with the central bank of Bangladesh.
The BB official also said Qatar makes investment of a huge amount of money abroad. The country has offered to invest a small part of it with the BB as a symbol of Muslim fraternity.