The Bangladesh Association of Banks (BAB), an organisation of private bank entrepreneurs and directors, has sought relaxation in the strictness imposed by the Bangladesh Bank on opening LC or letter of credit.
A delegation led by BAB Chairman and Exim Bank Chairman Md Nazrul Islam Majumder had a meeting with Bangladesh Bank Governor Abdur Rauf Talukder, four deputy governors and the spokesperson of the central bank on Tuesday (31 January).
According to sources at the meeting, there was a discussion on how to overcome the ongoing dollar crisis in the banking sector. Due to the dollar crisis, Bangladesh Bank has imposed restrictions on the opening of letters of credit.
Executive Director and Spokesperson of the Bangladesh Bank, Mezbaul Haque, said that due to the ongoing dollar crisis, the banks are not able to open full LCs. They want to know when this crisis will end.
At this time, the governor asked the BAB chairman for help to bring in export earnings, which have not yet been brought to the country, he added.
The governor expressed hope that these incomes will end the crisis in the country, said the BB spokesperson.
Earlier in July 2022, the Bangladesh Bank imposed a 100% cash margin for opening letters of credit (LCs) on cars, electronics, gold, precious metals, RMG, and pearls, among other items, to discourage imports in a bid to keep the country’s currency and debt management more integrated and stable.
This move has led to a decline in imports and in turn has spiked the prices of all kinds of commodities in the country.