The Export Development Fund, set up to help exporters with foreign exchange on comfortable terms, has fallen from $1 billion to $6 billion, a development that could ease pressure on forex reserves.
According to Bangladesh Bank spokesperson Mezbal Haq, businesses were borrowing less from the foreign currency fund as Bangladesh Bank formed an alternative fund in local currency.
EDF was established in 1989 with a small amount of reserves, which gradually grew to $7 billion. Exporters can repay their loans from the proceeds of their exports. When the export proceeds are wired, the bank deducts the loan amount, converts the remaining amount into taka and transfers the amount to the customer.