Following the opening of letters of credit (LC), importers in Bangladesh are allegedly facing an additional charge of Tk12 per dollar when exchanging dollars to taka in commercial banks to release their imported items. Business leaders raised these concerns during a meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in the capital, Motijheel, with Chamber President Mahbubul Alam in attendance.
Mehdi Ali, chairman of the FBCCI standing committee on export, stated that even if an LC is opened at Tk110 (dollar rate) for the import of raw materials or machinery, the commercial banks change the conversion rate to Tk120-122 per dollar when releasing the goods from the ports. Some banks allegedly even charge extra money during the LC opening process. The significant gap of more than Tk10 per dollar is affecting the competitiveness of traders in the export market, leading to increased prices of products in the local market.
During the meeting, business leaders also expressed concerns about potential losses in the export sector if incentive facilities for export-oriented industries, such as the readymade garment industry, are discontinued. The recent reduction of cash incentives for exports by Bangladesh Bank has already raised apprehensions among entrepreneurs in the export sector.
Leaders of the garment and textile sector reportedly met with Finance Minister Abul Hassan Mahmood Ali to express their concerns over the issue.
In another meeting of the FBCCI standing committee on ports and shipping, speakers called for the reduction of complexity in the import-export process for goods and raw materials. They highlighted that the ongoing global crisis has significantly increased business operating costs in the country, causing local entrepreneurs to lag behind in international market competition. FBCCI President Mahbubul Alam emphasized the importance of quickly addressing the existing problems in the import-export process and suggested that the standing committee on exports could play a crucial role in dealing with the current dollar crisis.
