Missions abroad asked to send unspent forex back home

The government has moved to bring back surplus funds from Bangladesh embassies and high commissions abroad in a bid to strengthen depleting foreign reserves.

The Bangladesh Bank has recently issued a letter to the foreign missions asking them to send back unspent funds and a few embassies have already sent back money at their disposal.

On 5 January, the Bangladeshi High Commission in Pretoria, South Africa deposited £97,461 in the Bangladesh Bank's account in the Bank of England. The Bangladesh Bank deposited the equivalent amount in local currency – Tk1,17,47,000 (at Tk120.53 per pound) – to the government treasury.  

Similarly, the Defence Wing of the Bangladesh High Commission in New Delhi, India has deposited $9,980 in the Bangladesh Bank's account in New York's Standard Chartered Bank and the Bangladesh Bank deposited the equivalent Tk9,98,000 (at Tk96 per dollar) to the government treasury on 22 January.

Surplus funds have also been deposited from an embassy in China and a Deputy High Commission in India, say sources.

Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque told The Business Standard (TBS) that all government transactions are conducted through Bangladesh Bank. As a result, if money is given to the government at home or abroad, it will be deposited in the Bangladesh Bank account.

However, he refrained from disclosing the exact number of embassies or high commissions that had sent unspent funds.

Bangladesh has 80 embassies or high commission offices in different countries around the world. These offices are funded by the government to meet special needs beyond their regular expenses. This funding comes from the Diplomatic and Consular Services Account of the Government of Bangladesh. In some cases, the money sent from the government is not fully spent. Usually, the embassies and high commissions immediately return unspent money as part of the due process and audit is also done immediately. But due to the foreign exchange crisis this year, the Bangladesh Bank has sent a letter to the embassies and missions through the Ministry of Foreign Affairs on behalf of the government to send back the unspent money quickly.

Former foreign secretary Md Shahidul Haque told TBS that usually the embassies or the high commissions do not have extra money beyond the budget allocation. If additional money is sent due to the visit of the head of the state or for any other reason, the account of that money is settled immediately after the event is over. As a result, he does not think the embassies will have any significant funds.

Information on how much money was sent to how many countries this year was not available. However, an official of the Ministry of Finance said that the government has taken the initiative to achieve frugality in spending. The government's austerity in foreign exchange is even tighter, due to which all types of foreign travel have been stopped.

Embassies and missions have also been instructed to cut costs. Besides, the embassies which have the opportunity to increase their foreign exchange income, have been advised to increase their income. Embassies usually earn money by issuing passports. As many passports as are required by embassies located abroad are being issued on an urgent basis. Since, Bangladeshis living abroad pay the passport fee in foreign currency. It increases the foreign exchange income of the government.