For Foreign Imports Bangladesh Bank Strict Their Rules

As a citizen of Bangladesh sometimes I checkout the economic or finance related news online. The daily star is a famous news portal of my country and it publish in english so foreigners can easily get updates about Bangladesh’s import, export and financial updates and almost everything you may need to look for like current issues of this country.

So today a news grabbed my attention and it was about imports. To keep the foreign exchange reserves stable Bangladesh bank (largest government bank) taken a major step. The Bangladesh Bank asked others bank yesterday to take up to hundred percent import payments from businesses in advance, specially for non-essential luxury goods.

Central bank appreciated this initiative and they believes this could be contribute or helpful to our financial sector stability. This way they can be able to overcome the inflation and loses that happen for Russia Ukraine war. As reported, On may 10, the central bank set seventy five percent margin on foreign good import but their initiative was failed and that's why central bank decide to increase it.

So from now to open LCs for electronic products like washing machines, air conditions and refrigerators, banks will need to have impose a margin of minimum hundred percent. This rate will be also applicable for gold, jeweleries of gold, sedan cars, sports utility vehicles, leather and jute made goods or products, cosmetics, ready made garments, home decor items and furniture. Importers will pay advance 75 percent on their imported goods. Bank won't issue loans for importers and they have to bear the margin cost.

Central bank of Bangladesh made it strict because Bangladesh's foreign exchange market remained unstable, inflation, additional imports needed to recover the lose we already had in pandemic need to recover asap. According to report, from may to July imports increased $75.40 billion which is only up 39 percent year on year. The two biggest source of foreign currencies are import and remittances is not running as needed. In last eleven months export increased 33% which brought $44.58 billon which is not considered as a positive sign. Dollar rate increasing for our Bangladeshi taka and our currency rate is dropping. So somehow this decision can bring some positive change in our economy.

What do you think about it? Is this bring financial stability to our economy. Hope this decision will prove wise and it may contribute in financial stability of Bangladesh.

News and Information source : thedailystar.net