DHAKA, Dec 17, 2020 (BSS) – Finance Minister AHM Mustafa Kamal today said that Prime Minister Sheikh Hasina is likely to come up with something before the next budget for properly utilizing the excess foreign currency reserves of the country.
“Our Prime Minister is thinking as to how much fund will be required to make payments especially for the mega projects. The Prime Minister is likely to come up with something in this regard before the next budget. She (PM) will take decision as she has been working to this end with attention,” he said.
The Finance Minister was replying to a question virtually after the day’s meetings on the Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase.
He said that if the foreign currency reserve is invested abroad, then it yield 1 to 2 percent interest rate. But, if it is invested into government purposes and if it is received in dollars, then the fund flow will remain intact while the income of the government would increase to a big extent.
Turning to the recent attainment of reaching the foreign currency reserve to the record height of $42 billion, Kamal said the government had earlier projected that the foreign currency reserve will reach $42 billion by this December.
“But, by the grace of Almighty Allah, we’ve able to attain that target much earlier and this is a big achievement for the nation. Our Prime Minister has also been working relentlessly and her role to this end is unique,”
Reiterating that the foreign currency reserve would reach $50 billion by 2030, he said, “We’re saying this according to our calculation and we expect if there is no such untoward incident in the world, then we’ll be able to reach that goal, Insha Allah.”
Expressing his satisfaction at the inward remittance flow that totaled $11 billion in the first five months (July-November) period of the current fiscal year (FY21), Kamal said that the remittance inflow of these five months is also 60 percent of the fiscal target. “If this trend continues, then the foreign currency reserve will also increase.”
The Finance Minister also informed that payments of $100 million were made against the mega projects from the foreign currency reserve during this July-November period. Despite this, the foreign currency reserve reached $42 billion.