BB policy misreading leaves third country export business in limbo
Tuesday, 18 May 2010
Jasim Uddin Haroon
A number of local traders, engaged in 'third country export business,' are in a deep trouble mainly because of misinterpretation of relevant policies by the central bank officials, depriving the country of a sizable potential income in foreign currencies, sources said.
A number of traders, who ventured into this area of 'entre pot trade,' have landed in the trouble because of the misinterpretation, though the country's latest export policy allows it in view of its immense potential, the sources added.
The pioneers in this area in the country have already shifted their business to international hubs like Hong Kong because of the constraints at the policy level, the traders concerned informed.
Recently Green Bengal Trading, a Chittagong-based company, which got orders to supply different kinds of consumer goods to Kuwait, fell victim to such a misinterpretation, as the Chittagong office of Bangladesh Bank (BB) turned down its proposal.
Initially, it wanted to open a letter of credit (L/C) worth US$ 15,820 with a local bank to supply energy drinks from Vietnam to Kuwait.
"I've adequate orders to supply different consumer goods to Middle East countries from Vietnam. But I'm facing obstacles in my country," said Md Yousuf Meah, chairman of Green Bengal Trading.
However, in a sharp contrast with the stance of the BB's Chittagong office, a senior official of the central bank at its Department of Foreign Exchange Policy told the FE: "Our export policy allows entre pot trade and we encourage such trading as we receive foreign currency."
When contacted, Nowshad Ali Chowdhury, general manager of BB's Chittagong office, told the FE on phone: "I am not aware of the issue."
But Kamrun Nahar, a deputy general manager of Bangladesh Bank's Chittagong office, told the FE: "Our policy does not allow such kind of business."
She however said: "The head office can take any instant decision on such matters, but we, who work at the local office, cannot take any such decision."
A number of local traders, engaged in 'third country export business,' are in a deep trouble mainly because of misinterpretation of relevant policies by the central bank officials, depriving the country of a sizable potential income in foreign currencies, sources said.
A number of traders, who ventured into this area of 'entre pot trade,' have landed in the trouble because of the misinterpretation, though the country's latest export policy allows it in view of its immense potential, the sources added.
The pioneers in this area in the country have already shifted their business to international hubs like Hong Kong because of the constraints at the policy level, the traders concerned informed.
Recently Green Bengal Trading, a Chittagong-based company, which got orders to supply different kinds of consumer goods to Kuwait, fell victim to such a misinterpretation, as the Chittagong office of Bangladesh Bank (BB) turned down its proposal.
Initially, it wanted to open a letter of credit (L/C) worth US$ 15,820 with a local bank to supply energy drinks from Vietnam to Kuwait.
"I've adequate orders to supply different consumer goods to Middle East countries from Vietnam. But I'm facing obstacles in my country," said Md Yousuf Meah, chairman of Green Bengal Trading.
However, in a sharp contrast with the stance of the BB's Chittagong office, a senior official of the central bank at its Department of Foreign Exchange Policy told the FE: "Our export policy allows entre pot trade and we encourage such trading as we receive foreign currency."
When contacted, Nowshad Ali Chowdhury, general manager of BB's Chittagong office, told the FE on phone: "I am not aware of the issue."
But Kamrun Nahar, a deputy general manager of Bangladesh Bank's Chittagong office, told the FE: "Our policy does not allow such kind of business."
She however said: "The head office can take any instant decision on such matters, but we, who work at the local office, cannot take any such decision."