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Exporters for narrowing export-remittance dollar sales gap

Published : Tuesday, 4 October, 2022 at 12:00 AM  Count : 262

On the growing dollar crunch exporters urged the banks for narrowing down current gap between sales of the greenback sources - export and remittance.
To make Bangladeshi products more competitive in the export market exporters must get some additional benefits from the sales of their earned greenbacks, the exporters said.
Currently as per re-fixed dollar prices the remitters can sell per dollar at Tk107.50 and the      exporters can sell at Tk 99 per dollars. The gap between the two sources is Tk8.50.
Both Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers Association (Bafeda) fixed the dollar buying rates from exporters and remitters.
Primarily it was Tk108 against per dollar from remittance earnings but it was re-fixed later at Tk107.50 against per dollar of remittance source.
When talking with the Daily Observer Bangladesh Garments Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said this Tk8.5 gap should be narrowed and exporters should get additional benefits in selling dollars.
He quoting September export performance said it is already negative which may create a bad impact in foreign currency earnings.
The BGMEA top office bearer said in Pakistan one dollar is sold at PKR228.1, in Sri Lanka it is LKR365.6612 per dollar, in India one is sold at INR81.355 and in Turkey 1 USD is sold at TRY18.502.
He said, "As our competitive countries against exporting their garments are getting higher return in their local currencies it should be also for Bangladesh to sustain in the market in the upcoming days."
According to latest official data in September export earnings fell by 6.25 per cent to $3.91 billion from $4.17 billion over the corresponding month of September last year. Faruque Hassan said this may continue in the coming months as there is inflation caused problems in the global market.
The BGMEA former vice president Shahidul Islam said at the existing dollar rate though exporters are getting some benefits in export bills, the gap should be reduced. He said, "When we go for import the banks charge higher from us as a result the existing benefit of selling a dollar at Tk99 is not much in a sense.
He said the weight average rate of buying dollars with Tk1 profit for banks is set at Tk104.25 but practically the banks are charging higher in opening letter of credits.
He said the banks though declared not to make profit exceeding Tk1 from average buying rate, they do not follow it.
To tame inflation the Bangladesh Bank has put some restrictions on import and it is already working that the August import declined significantly.
The former BGMEA leader said to stem inflation it is inevitably needed to restrict more on import as export performance became negative in September and he fears if export earnings declines in coming months the dollar crisis may loom large again.
Like other competitive countries for Bangladesh should rethink of depreciating its domestic currency against dollar, he said.
He said remittance in September also declined to $1.5 billion from previous month's $2 billion. So it is a time to adjust the gap by taking more strict measures and both the remitters and exporters should be encouraged with giving some benefits.










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