The central bank of Qatar agreed in principle to deposit $1.8 billion with Bangladesh Bank, which would boost the country's foreign exchange reserve.

BB Governor Atiur Rahman held a meeting with the acting governor of Qatar Central Bank, Sheikh Fahad Faisal Al-Thani, in Qatar recently, according to a BB statement.

A technical committee of both the central banks will work out the terms and conditions.

A memorandum of understanding will be signed between the two central banks soon. The BB has already given the central bank of Qatar a draft MoU, which is being examined now.

The BB is expected to send a technical team early next year.

An analyst said it is a kind of borrowing by one central bank from another to boost forex reserves.

The foreign exchange reserve stood at $11.81 billion yesterday, which is equivalent to around four months' import bill of the country.

The decision of Qatar Central Bank followed earlier discussions between Prime Minister Sheikh Hasina and the emir of the Gulf state.

During the meeting, Qatar also wanted to recruit some experts from Bangladesh for advising its central bank.

News: The Daily Star/Bangladesh/5th-Dec-12