Bangladesh Bank Deputy Governor Ahmed Jamal said that the Bangladesh Bank is always committed to providing policy support to exporters and importers.
“Given the ongoing situation due to the Covid-19 pandemic, Bangladesh Bank extended policy supports to international trade by the ways of (a) extending repatriation of export proceeds, (b) extension of usance periods of import payments including back-to-back LCs, (c) EDF loan repayment extended to 360 days, (d) refinancing from EDF for normal back-to-back LCs and So on,” he said.
Jamal was speaking at the certificate award ceremony of the ICC Bangladesh Workshop on Factoring & Open Account for International Trade Finance held in the capital.
The Deputy Governor of Bangladesh Bank in his keynote speech mentioned that the central bank after huge exercises brought radical changes in foreign trade transactions by the issuance of FE Circular No. 25 on June 30, 2020.
“We are growing despite different odds. I am sure external financiers will be benefited from trade transactions in Bangladesh,” he said.
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 the ongoing global financial and economic crisis, banks and businesses need to take stringent measures to ensure that their sales transactions are watertight.
He said open accounts and international factoring are being adopted by most 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% of the total export of $52.08 billion.
“The Country is poised to overtake China in garments export to the EU. Bangladesh’s share in the global RMG, the market is only 6.50% as against China’s 32.21%,” 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 digitization to make Smart Bangladesh. Therefore, we would suggest appropriate policy changes should be made by Bangladesh Bank to digitize international trade. We from ICC Bangladesh will be delighted to support Bangladesh Bank in implementing DSI developed by ICC HQ.” he added.
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 workshop.