Some of the commercial banks are reluctant to open LCs (letters of credit)for importingessential commoditiesdue to'shortage of dollars'.
Bangladesh Trade and Tariff Commission (BTTC) recently pointed out the difficulty being faced by the banks, recommending necessary intervention by Bangladesh Bank (BB) to solve the problem.
"Different banks are expressing their unwillingness to open import LCs due to dollar scarcity," it said, suggesting the Ministry of Commerce the need for the central bank's intervention.
The BTTC put forward a set of recommendationsto the Ministry of Commerce to ensure smooth supply of essentials during the shutdown across the country due to the COVID-19 pandemic.
The FE obtained a copy of the document.
It pointed out that receiving the import documents from lien banks concerned are also being delayed due to disruption in the international express services following the pandemic.
It suggested mitigating the obstacles to opening the LCs through providing necessary instructions or supports to the banks concerned by the BB.
The BTTC considered that the BB might issue necessary instructions so that the import documents could be released based on the scan copies instead of the main documents.
It stressedthe need for releasingthe imported raw materials, essential goods and raw materials of allied industries by the respective CustomsHouses on priority basis.
Italso viewed that banking hours in some specific branches might be extended for operating merchant bankingduring thisshutdown period.
The BTTC suggested providing necessary labourers for loading and unloading goods in the shipping port-centred business hubs especially Khatunganj, Nitaiganj and Noapara.
"We'velearned that the banks are now struggling to meet import payments due to the dollar storage," an official of BTTC told the FE.
The BB has resumed sale of US dollar (US$) to banks directly for offsetting the extra pressure on the market, caused by lower remittance inflow following the coronavirus outbreak.
It sold around US$147 million to the commercial banks to facilitate settlingthe import payment obligations from April 01 to April 20, according to the BB.
When contacted, BBExecutive Director KaziSayedurRahman said that there is no crisis of dollar in the market and the central bank is always supporting the banks as per their requirements.
He said there is no reason to worry about the availability of dollars. The central bank is ready to provide the banks with both foreign and local currencies.
The central bank has so far sold US$ 676 million to the banks till April 20 of the current fiscal year (FY), he added.
Officials said the government is taking necessary steps time to time to keep the supply and prices stable in the market during the shutdown, upcoming Ramadan and also throughout the year.
It has also taken up measurers for enhancing imports of key essential commodities round the year, they added.
To this end, the commerce ministry has recently requested the importers concerned to speed up imports of essential goods.
Contacted, BTTC member Sha Md. Abu RaihanAlberuni said the commission sent the suggestions to the ministry on April 11 for taking measures to ensure adequate supply of essential items.
Some senior bankers said the country's export sector saw negative growth and the flow of inward remittance dropped in March last following the coronavirus outbreak in different parts of the world.
Currently, the banks are paying the previous imports payments,putting pressure on the foreign exchange market, they added.
The banks facing dollar shortage were taking support from the central bank to meet their foreign currency demand, they said.
