Bangladesh’s imports from China exceed its exports by more than 10 times, putting huge strain on the country’s reserves. “If we get this loan, it will help us in two ways: we can settle some of the Chinese payments in yuan and it will help to build our reserves because renminbi is a reserve currency” approved by the International Monetary Fund, he said.
Bangladesh is in talks with China for a loan of about US$5 billion ($6.78 billion) to bolster the nation’s dwindling foreign-exchange reserves, the central bank governor said, drawing the South Asian country closer to Beijing.
The funds will be denominated in yuan and give exporters access to financing they can use to pay for much-needed raw material imports from China, Governor Abdur Rouf Talukder said in an interview in Dhaka on Tuesday. The talks are at a technical stage, he added.
