Govt lifts investment cap on wage earner bond

The government has removed the highest investment limit of the Wage Earner Development Bond to encourage non-resident Bangladeshis (NRBs) to send more foreign currency to the country, which has been facing a forex shortage for more than two and half years.

Now, there is no investment ceiling on any diaspora bond issued by the government.

"NBRs can invest as much as they want," according to a press release from the Internal Resources Division, which operates under the Ministry of Finance.

Previously, Bangladeshis staying abroad were allowed to invest a maximum of Tk 1 crore in the bond, for which the government offers 12 percent interest at maturity after 5 years.

The IRD also said it has rationalised auto reinvestment opportunities for the bond.

The measures will take effect from December 1 this year, according to the statement.

The IRD said remittance brought into the country through proper channels could be invested in the wage earner bond for 15 years: initial investment for five years and a renewal scope for the next two tenures.

Bangladeshis living abroad can also reinvest the funds they invested in the other diaspora bonds, the US Dollar Premium Bond and US Dollar Investment Bond, for 15 years: initial investment for three years and four reinvestment opportunities.