June 10, 2023, 10:53 pm

Staff Correspondent

2022-05-31 13:02:16 BdST

Bangladesh plans adopting payment systems of Hong Kong, Singapore

Bangladesh is considering adopting new payment methods developed in Hong Kong and Singapore as an alternative to move away from the SWIFT system and save up dollars.

The government has instructed the Bangladesh Bank to look into the new systems and act accordingly.

After a meeting of the cabinet presided over by Prime Minister Sheikh Hasina on Monday at the Ganabhaban, Cabinet Secretary Khandker Anwarul Islam said, “[The new systems] are much more comfortable. [The cabinet] asked [the central bank] to explore them.”

The governor of the Bangladesh Bank Fazle Kabir, who attended the meeting, has already begun moving in that direction. He has been given several days to come up with results, Anwarul said.

The central bank is bringing in around $4-5 billion in funds from Hong Kong, which offered to open a Letter of Credit to pay off producers at a much lower interest rate if Bangladesh enters an agreement with them, the cabinet secretary added.

“[They offered us] to make payment in cash for our exports… it is very convenient for the garment industry.”

Singapore is also offering similar benefits, he added.

Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.

Popular Article from Economy