BB raises interest rate for non-resident foreign currency deposits

Bangladesh Bank (BB) has increased the interest rate of non-resident foreign currency deposit (NFCD) accounts in a bid to boost inward foreign currency flow.

For one year and up to three years of deposit, such account holders will get the benchmark reference rate plus 2.25 percent interest and for three to five years of deposit, the interest will be the benchmark reference rate plus 3.25 percent, as per a BB circular issued on Monday.

Other instructions in this regard will remain unchanged until further notice, said the Foreign Exchange Policy Department.

Earlier on July 17, the central bank allowed the banks across the country to raise fresh deposits under NFDC accounts without any reference to the euro currency interest rate.