The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) suggested considering using a second currency, other than the US dollar, for international trading.
The proposal came up following volatility in the country's forex market, as a result of which value of the American currency skyrocketed here.
The MCCI placed the suggestion when a delegation of the trade-body, headed by its President Md. Saiful Islam, called on Bangladesh Bank (BB) Governor Abdur Rouf Talukder at his office in the capital on Wednesday.
The other members of the delegation were - MCCI Senior Vice-President Kamran T. Rahman, Vice-President Habibullah N. Karim, and Members of Board of Directors Syed Tareque Md. Ali, Rubaiyat Jamil, Nihad Kabir, Anis A. Khan and Syed Nasim Manzur, and Secretary-General and CEO Farooq Ahmed.
The MCCI named RMB (Renminbi) as the second international currency instead of dollar, as Bangladesh imports most from China, which is the country's largest trade partner.
"In particular, reference was made towards using the Chinese RMB as the second currency for international trading, especially for importing raw materials from China," said a press statement.
It also said this would be a great relief in easing up the present high demand for the US dollar. RMB had already been officially recognised as a second reserve currency in Bangladesh.
The MCCI emphasised activating the measure through a circular from the BB to the relevant stakeholders.
"The governor assured the trade-body of his support and mentioned that necessary circular would be issued to clarify that importers can use RMB in case of their imports from China."
The MCCI president appreciated the BB governor's clearly indicating three priority areas from the very beginning - controlling the inflation, managing the exchange rate, and increasing the foreign exchange reserve.
He also drew attention to the BB's recent reduction of the exporters' retention quota (ERQ), which would impact export.
Mr. Nasim Manzur mentioned devaluation of the Bangladeshi Taka as per the market demand - instead of what is being done presently.
He also suggested introduction of a real effective exchange rate. The rates could be fixed separately for import and export.
The BB governor focused on controlling inflation through various innovative measures to facilitate job creation along with supporting the people whose purchasing powers diminished.
He indicated some steps, including controlling demand and keeping supply side response at ease, for managing smooth and effective supply chain operations.
Mr. Talukder also talked about the inflow and outflow of dollar, and Bangladesh reaching a secured position, hopefully by this December.
He indicated considering keeping the interest rate spread at a reasonable level.
On the other hand, the MCCI delegation requested the BB governor to enhance allocation of the Export Development Fund (EDF) at a lower interest rate to boost the country's export.
Replying to it, the governor expressed concerns over some odd practices regarding non-payment of the EDF loans in foreign currencies by converting those into Taka loans.
"It was not desirable, and it should be stopped at any cost," he noted.
Mr. Talukder requested the MCCI members to support the government in overcoming the challenges together. The MCCI assured all possible support and cooperation to mitigate the challenges.
