Bangladesh exports goods worth $55 b in 2022-23 FY
Rafiqul Islam Azad:
Around $9 billion from export earnings in the 2022-23 financial year has yet to come to the country, which has been facing a dollar crisis for a long time.
In the financial year 2022-23, goods worth $55 billion were exported abroad. Out of this amount, exporters brought in $46 billion, while $9 billion did not enter the country in one year.
This information was revealed at a meeting of the Bangladesh Bank with the Association of Bankers of Bangladesh (ABB), an organisation representing chief executives of commercial banks, on Wednesday, according to a highly placed source in the central bank.
The meeting discussed various steps taken by the Bangladesh Bank to address the dollar crisis and inflation, said the source.
Experts noted that some amount from export earnings typically remains outstanding each year, but this time the amount is substantial. They observed that one of the main reasons behind the dollar crisis is the delay in receiving export earnings.
Sources from the meeting stated that traders are not bringing the export value currency home due to various excuses. In many cases, they deliberately extend the time for payment of export goods, resulting in a significant deficit in foreign trade finance, according to the sources.
At the same time, the major problems at present are the dollar crisis and inflation. The Bangladesh Bank has instructed the banks to prepare to implement all the initiatives aimed at reducing the pressure from these two issues.
Executive Director and Spokesperson of the Bangladesh Bank, Md. MezbaulHaque, stated that the Bangladesh Export Promotion Bureau highlighted the data that products worth $55 billion were exported in the last financial year. However, only $46 billion came to the country, leaving a deficit of $9 billion.
He said that controlling the country’s inflation is the biggest challenge now. Several policy changes have been introduced to regulate it, many of which have not been fully implemented. However, it is expected that in the next three to four months, they will be fully implemented, leading to a positive change.
Talking to Daily Industry, former Lead Economist at the World Bank, Dr. Zahid Hussain, said that the total value from export earnings may not come to the country in the same year since it takes time due to various formalities. However, he emphasized the need to investigate the reasons for such a significant amount of export value remaining outside the country even after a long time.
According to him, the changes in currency rates that are less than the market price may encourage businessmen not to bring their export earnings into the country timely.
According to a source, two main issues were discussed in the meeting. One of them is CIB, which has some problems, and certain tactics have also been revisited. This matter will be resolved soon.
The second issue is the interest rate on loans. It has been observed that the loan interest rates are gradually increasing, creating pressure on borrowers. Controlling inflation is the sole decision of the Bangladesh Bank, and along with loans, interest rates on deposits will also increase.”
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