Overdue import payment obligations stand at $500m
BB asks 35 banks to clarify reasons by Sunday
FE REPORT | Wednesday, 27 November 2024
Bangladesh Bank has sought clarification on overdue import-payment obligations from 35 scheduled banks as the amount stood at around US$500 million, officials said.
The banks have also been instructed to submit the clarification to the central bank by Sunday next, according to a directive issued on Monday.
"We'll take the next course of actions after receiving the clarification," a senior official at the BB told the FE on Tuesday, adding that it is a priority move to brighten the country's image abroad.
He said the central bank will not tolerate any delay settling the dues against letters of credit (LCs) as the pressure on the country's foreign exchange (forex) market is now manageable.
The exchange rate of Bangladesh Taka (BDT) against the US dollar has long been maintaining stability, indicating that the forex sales pressure on the market eased.
The US currency is now selling to importers as well as the inter-bank market at Tk 120 each while the buying rate is offered to exporters at Tk 119, according to the market operators.
The exchange rate has been maintaining these levels since August 20 last and the operators are expecting it to continue until December 2024 as the mid-rate of crawling peg is unlikely to be reviewed before the next monetary policy, scheduled to be released in January 2025.
Besides, narrowing the current-account deficit has pushed down pressure on the forex market in recent months, according to the central banker.
The current-account deficit stood at only $127 million in the first quarter (Q1) of fiscal year (FY) 2024-25, easing from a $1.83 billion deficit in the same period last year, thanks to rising export receipts, imports returning to positive growth and a strong rebound in remittances.
The BB's latest move follows an earlier instruction to the authorised dealer (AD) banks to clear overdue import payments to avert tougher regulatory measures.
In the instruction, the banking regulator warned that failure to settle payments on time is subject to punitive actions, including personal accountability for the officials responsible for the transactions.