Bangladesh is considering adopting new payment methods developed in Hong Kong and Singapore as an alternative to move away from the SWIFT system and save up dollars, reports bdnews24.com.
The government has instructed the Bangladesh Bank to look into the new systems and act accordingly.
After a meeting of the cabinet presided over by Prime Minister Sheikh Hasina on Monday at the Ganabhaban, its Secretary Khandker Anwarul Islam said, "[The new systems] are much more comfortable. [The cabinet] asked [the central bank] to explore them."
The governor of the Bangladesh Bank Fazle Kabir, who attended the meeting, has already begun moving in that direction. He has been given several days to come up with results, Anwarul said.
The central bank is bringing in around $4-5 billion in funds from Hong Kong, which offered to open a Letter of Credit to pay off producers at a much lower interest rate if Bangladesh enters an agreement with them, the cabinet secretary added.
"[They offered us] to make payment in cash for our exports… it is very convenient for the garment industry."
Singapore is also offering similar benefits, he said.
Meanwhile UNB report adds: The Cabinet cleared the draft of Bengali and English versions of Regional Trade Agreement (RTA) Policy, 2022 in a bid to protect and expand the country's export markets overcoming the post-graduation challenges.
Since Bangladesh has graduated from the status of a least developed country (LDC), it needs to come trade agreements with many countries, said Cabinet Secretary.
"To protect and expand our export markets as well as ensure duty-free access for our products by overcoming the challenges of LDC graduation, we've taken steps to go for regional trade agreements. So, the policy has been taken for it (signing RTAs)," he said.
Besides, the meeting approved the draft of Bangladesh Small and Cottage Industries Corporation Act, 2022 in a view to making the industrial entities under the BSCIC more effective, said the Cabinet Secretary.
The proposed law will particularly promote women entrepreneurs as the existing law -Bangladesh Small and Cottage Industries Corporation Act, 1957- is an old one, which hadn't focused on women properly.
The Cabinet also approved in principle the draft of International Mother Language Institute (Amendment) Act, 2022 aiming to form a language research trust under the institute.
Scholarship and fellowship will be given from the permanent fund of the trust for language research and development, said Anwarul Islam adding that its name will be 'Bangabandhu Sheikh Mujibur Rahman Language Research Trust.'
The meeting endorsed the ratification proposal for an agreement to be signed between Bangladesh and Oman on the mutual visa exemption for the holders of diplomatic, official, special or service passports.
The cabinet approved the proposal for providing the transit facilities to Nepal under the Bangladesh, Bhutan, India and Nepal-Motor Vehicle Agreement (BBIN-MVA) by cancelling its earlier decision over the Operating Modalities for the Carriage of Transit Cargo between Nepal and Bangladesh.
The inauguration of Padma Bridge will be 'super gorgeous' as there will be replication of the original gala event in all the 64 districts in the country simultaneously, said the Cabinet Secretary.
The long-cherished Padma Bridge is scheduled to be opened to traffic on June 25 next.