So impossibly dumb.... why would BD hold its reserves in US? It does not....it has some money in US where it invests in the overnight money market.
As to holding dollar, why do we need to hold it anywhere accept in BoB. When an exporter gets paid in dollar that money comes to BoB. Same as if its in euro.
BD is not going to be sanctioned.... this is the act of an idiot.... hold money in RMB and INR, why and what the **** for? Who is going to be accepting these soft currencies from us?
Our biggest trading parter is US and dollar is the international trading currency. These fools think dollar therefore can only be held in an US bank. That is not the case.
You hold foreign currency based on your requirement... BoB holds dollar, GBP, Euro etc based on predicted requirement. It converts and hold most of the money as dollar as it is the most liquid currency.
Again I reiterate....BoB holds our reserves....it is not kept in US or European Banks....
BoB uses clearing housed and asian clearing union for its import and exports.... the monies comes in differing currencies from individuals...the incoming and outgoings are cleared against each other.... if there is a shortfall BoB transfers fund from own deposit to the clearing house or ACU. If there is an excess clearing house or ACU deposits money into BoB account.
The reserves are in BoB, which holds hard currencies.
The posted news is dumb....however fully supportive of US encouragement to limit BAL excess.
You are right.
Hasina has to stop enabler-excuse of authoritarian practices (death squad, RAB etc.) and share power with other parties (whatever are left, that is). Neutralize supposed pain-points and act quickly.
Regardless of QUAD Strategy or whatever, sanctions are hanging over Hasina's head like an existential looming threat.
Point is - things could get worse sanction-wise, very quickly. US could say that they don't allow import of apparel from sanctioned countries (just like they banned Uighur area cotton from China), then we are more or less finished. We cannot survive on China Market alone. We are not part of RCEP and of course not ASEAN either.
This is the result of Lazy idiotic Bangladeshi Govt. neither diversifying export basket, nor spreading out export destinations. We handed the US the leverage on a golden platter (all our export eggs on the same US basket) and trusted their "good judgment" a bit much.
The US has our collective Bangladeshi balls in a vice grip...and although it hopefully may not turn out like so, the US also does not care if Bangladesh turns into another Afghanistan. In fact the latter may be a Neocon plan, after all.
Hate to be the bearer of doom and gloom, but Hasina so far did not do her homework for all above, and we did not hedge against Niyo-con "Zayonist" plan of destroying large Muslim economies and kicking them back into the fifth century. That has been ongoing since WWII.
Look at all the debacles hatched against Turkey, Pakistan, Malaysia, Indonesia and now, us.
I do not buy the neo-con nonsense when it comes to BD.
BD is not even a middle power yet, we are not on anyones radar.
As to do we need to follow US dictate.... yeap we do....i personally wished US to step in much sooner against BAL. I support US in this.
Democracy is the only way forward in my opinion and BALs one party rule policy means it should be liquidated to the last supporter.
