The United States has advised that Sonali Bank, a state-owned bank in Bangladesh, close its accounts with two banks in Myanmar that are facing sanctions.

Most of the payments for bilateral trade between the two bordering countries are made through these Sonali Bank accounts.

Sonali Bank has nostro accounts in both banks and also has some foreign currencies.

In June, sanctions were imposed on the Myanmar Foreign Trade Bank (MFTB) and the Myanmar Investment and Commercial Bank (MICB), both state-owned.

Later, the US Embassy in Dhaka informed Bangladesh's Foreign Ministry of its decision and requested the closure of the two accounts.

On August 3, the Foreign Ministry forwarded the letter to Sonali Bank and advised necessary measures in this regard.

The situation has put Sonali Bank in a difficult position. Sonali Bank has $17,000 in deposits with the MFTB and $200,000 with the MICB.

On the other hand, the MFTB has $100,000, and the other has $1 million in Sonali Bank.

Sonali Bank officials said the money is now frozen, which means that they cannot withdraw or transfer the amounts.

Sonali Bank’s Chief Executive Officer and Managing Director Afzal Karim told Bangla Tribune that no transactions are being made through these accounts. 

He confirmed that the banks were also unable to withdraw their deposits from each other. He added that a directive in this regard has been sought from the Bangladesh Bank. But the central bank has not issued any clear decisions yet.

Bangladesh currently imports timber, ginger, onions, betel nuts, frozen fish, woolen brooms, coconuts, pickles, dried fruits, cane, tamarind seeds, pulses, and chickpeas from Myanmar under the border trade between the two countries.

On the other hand, Bangladesh exports potatoes, biscuits, hosiery, and plastic products to Myanmar.

According to data from the Export Promotion Bureau (EPB), Bangladesh exported merchandise worth nearly $3.9 million to Myanmar in 2021-22.

On the other hand, in 2020-21 year, Bangladeshi businessmen imported products worth Tk1,409 crore (equivalent to about $130 million as per the current dollar rate) from Myanmar.