Prices of various products including fuel oil and food have gone up in the international market. Therefore, the import cost has increased by about 44 per cent. However, the export income has not increased in comparison to that. The amount of remittance income has also come down.
As a result, the dollar crisis has reached its peak. On Tuesday, the banks also brought in remittance with Tk 102 per dollar. However, it is selling dollars at a slightly lower price to meet import obligations, as the cash flow rate of export earnings is Tk 95 to 96 now.
In this situation, the central bank has imposed restrictions to discourage the import of 27 types of goods including expensive cars, cosmetics, gold ornaments, readymade garments, household electrical appliances and beverages to avert the ongoing dollar crisis.
From now on, importers will not get bank loans for importing these products. Banks will not be able to use the loan even if it had been approved earlier. Bangladesh Bank issued a notification in this regard on Monday night.
According to the notification of Bangladesh Bank, from now on, some 75 to 100 per cent margin will be applicable for import of luxury products. As a result, in order to import these products, full or 75 per cent of the money has to be deposited in the bank beforehand. The banks will not be able to give any kind of loan for import of these products.
According to the Bangladesh Bank (BB), the long-term negative impact of the coronavirus and the recent prolongation of the war between Russia and Ukraine have led to instability in the global economy. In this context, in order to further consolidate the currency and debt management system of the country, the BB directed to re-determine the cash margin rate in the case of opening import bonds.
The directive says 100 per cent cash margin has to be saved in case of opening import bond for luxury goods such as motorcars like sedans, SUVs and MPVs, electrical and electronic home appliances, gold and gold ornaments, precious metals and pearls, ready-made garments, leather and jute products, cosmetics, furniture and ornaments, fruits and flowers, non-cereal food (such as non-grain food items, processed foods and beverages, canned food, chocolate, biscuits, juices and soft drinks), alcoholic beverages, tobacco, tobacco or alternative products.
The required margin has to be deposited from the customer's own source for the opening of import bonds for these products. In other words, no margin can be paid in favour of the importer in the concerned bank against the opening of the import bond by opening an existing loan account or by creating a new loan account.
Besides, at least 75 per cent cash margin should be maintained for opening an import bond for products like baby food, essential food products, energy, life-saving medicines and equipment recognised by the Directorate General of Health Services (DGHS), directly imported capital equipment and raw materials for manufacturing local industries and export oriented industries, agricultural products and other government priority projects.
Speaking regarding this, Syed Mahbubur Rahman, managing director of Mutual Trust Bank, told Prothom Alo, “Closure of bank loans will surely reduce the pressure on import costs. However, what is the cost of importing these products, is a big issue as well. We will have to wait to see its impact.”