Bangladesh Bank committed to provide policy supports to exporters, importers: Deputy Governor
Bangladesh Bank Deputy Governor Ahmed Jamal on Sunday said that the central bank is always committed to provide policy support to the exporters and importers, reports news agency BSS.
“Given the ongoing situation due to Covid-19 pandemic, Bangladesh Bank extended policy supports to international trade by the ways of extending repatriation of export proceeds, extension of usance periods of import payments including back to back LCs, EDF loan repayment extended to 360 days, and refinancing from EDF for normal back to back LCs and so on,” he said.
Jamal was speaking at the certificate award ceremony of ICC Bangladesh Workshop on Factoring & Open Account for International Trade Finance held in the capital, said a press release.
The deputy governor of the Bangladesh Bank in his keynote speech mentioned that the central bank after huge exercises brought radical changes in foreign trade transactions by issuance of FE Circular No. 25 on 30 June, 2020.
He observed even during the pandemic situation they are being visited by several international financing institutes. “This indicates that we are growing despite different odds. I am sure external financiers will be benefited from trade transactions of Bangladesh.”
Jamal also requested the exporters to use the policy so as to protect their payments.
ICC Bangladesh vice president AK Azad said that in the context of ongoing global financial and economic crisis, banks and businesses need to take stringent measures to ensure that their sales transactions are watertight.
He further said open account and international factoring is being adopted by most of the countries around the world for better and smooth trade finance. “Factoring in South Asia as a region in general and Bangladesh in particular has still been very limited, whereas factoring in most other regions of the world has exploded with the shift towards open account trade,” the deputy governor added.
Azad said Bangladesh has made a strong economic recovery from the Covid-19 pandemic. The export earnings are increasing and also successfully advancing overcoming all hurdles. During FY22, the RMG exports were $42.62 billion, which is about 82 per cent of the total export of $52.08 billion.
“The Country is poised to overtake China in garments export to EU. Bangladesh’s share in global RMG, market is only 6.50 per cent as against China’s 32.21 per cent,” he added.
Azad mentioned that BGMEA is targeting to export $100 billion worth of garment items by 2030. Besides, there is an immense potential for Bangladesh to increase its export of leather goods, pharmaceuticals, plastic products and other products.
“Bangladesh government is promoting digitisation to make Smart Bangladesh. Therefore, we would suggest appropriate policy changes should be made by Bangladesh Bank to digitise international trade. We from ICC Bangladesh will be delighted to support Bangladesh Bank in implementing DSI developed by ICC HQ.” he added.
Md. Akhtaruzzaman, director general, Bangladesh Institute of Bank Management (BIBM) and Peter Mulroy, secretary general, Factor Chain International, the Netherlands addressed the inaugural session and ICC Bangladesh secretary general Ataur Rahman delivered the welcome address.
In the workshop a panel discussion was held that was moderated by Muhammad A. (Rumee) Ali and the keynote speaker was Ahmed Jamal, deputy governor, Bangladesh Bank.
The panelists were – Md. Fazlul Hoque, managing director, Plummy Fashions Ltd.; Mohammad Hatem, executive president, BKMEA & managing director, MB Knit Fashion Ltd.; Muhammad Mohsin Reza, general manager, Supply Chain of SKF Pharmaceuticals Limited; Naser Ezaz Bijoy, president, Foreign Investors’ Chamber of Commerce & Industry (FICCI) and chief executive officer, Standard Chartered Bank; Ahmed Shaheen, additional managing director, Eastern Bank Limited; Peter Mulroy, secretary general, Factor Chain International and Prashanta Kumar Banerjee, professor, Bangladesh Institute of Bank Management.
A total of 131 participants including officials of the Ministry of Commerce and Bangladesh Bank, 96 participants from 31 banks and 32 participants from 24 companies attended the day-long the workshop.