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Dollar shortage forces insurers to halt reinsurance payments

Posted On: Feb. 13, 2023 10:02 AM CST

Foreign exchange

A major dollar crisis in Bangladesh has forced local insurers to halt premium payments worth over $50 million to foreign reinsurers over the past five months, leaving the insurance industry worried about the future, The Business Standard reported. If local insurers are unable to make the payments eventually, overseas reinsurers may cancel existing contracts, leaving the country’s mega-projects and multiple properties uninsured.