Driven by dollar dearth, exporters seek temporary policy intervention allowing them to comply with import-payment obligation in local currency to navigate the crunch time.
Representatives from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA), among others, attended the meeting with high-ups of Bangladesh Bank (BB).
The request from the export industry comes two months after the central bank of Bangladesh warned banks of cancelling the licence of their authorised dealers if they failed to settle import or accepted bill payments on maturity.
Emerging from the parleys, BKMEA executive president Mohammad Hatem told reporters that banks stopped opening LCs (letter of credit) following the circular issued on October 26 last asking the businesses to clear the back-to-back LC payments first.
"So we have to clear the payments on time in alternative ways even though there are no export proceeds. But it's very difficult as there is a shortfall of dollar in the market. That's why we requested the central bank to allow payment in local currencies," he said.
He said the BB could consider their request temporarily, till the crisis of the greenback persists. "We hope the BB will realise the situation and take measures accordingly."
But BTMA representatives feel different. They say it will put cotton importers in real trouble as they paid the import bills in dollar after getting the back-to-back LC payments from the exporters.
"If they (exporters) paid us in local currency, it would be meaningless as our exporters will not accept their bills in Bangladeshi currency. Not only that, we took EDF, project and foreign credits which we need to repay in dollar each month," they said in their opinion.
Instead, they suggested that a huge quantity of locally produced cotton remained unsold and the exporters could use this cotton, which will help lessen the demand for the greenback.
When contacted, a BB official said, "It is a very critical issue that needs to be settled after a proper review so that it does not conflict with any policy."
