RMG exporters for introducing dual currency exchange rates
Thursday, 6 November 2008
Siddique Islam
Country's apparel exporters have proposed to the central bank for introducing dual currency exchange rates to help readymade garment (RMG) exporters face the consequences from possible global economic recession.
The Bangladesh Garment Manufactures and Exporters Association (BGMEA) has submitted proposals to the Bangladesh Bank (BB) seeking policy supports to overcome the ongoing international financial crisis that has already hit many countries across the world.
For exporters (cutting and making) the exchange rate of Bangladesh Taka against US dollar can be fixed at Tk 71.00 from Tk 68.35, the BGMEA said in its proposals.
The central bank officials said that there was no scope to introduce such dual rates in the existing floating exchange rate regime.
For composite industries, the country's apex forum of garment exporters appealed to increase cash incentive from the existing 5.0 per cent to 7.50 per cent.
The BGMEA also suggested reintroducing the export performance benefit (EXPB) scheme to facilitate the exporters' competitiveness in the global market.
"We've sought policy supports from the central bank to face the ongoing global economic recession," BGMEA President Anwar-UL Alam Chowdhury (Parvez) told the FE Wednesday.
"We'll welcome any other form of support from the government which will protect and help the RMG sector to sustain and grow," Mr. Parvez said, adding that RMG exporters need support to continue their business activities.
The BGMEA, quoting their analysis, said that the situation has both risks and opportunities for Bangladesh. "We feel that we can turn the risks into greater opportunities if certain monetary and fiscal policy were adopted urgently," it added.
"We've confidence because a lot of big overseas customers also feel that Bangladesh is a strategically important sourcing destination for them in the global apparel market," the BGMEA observed.
Regarding regional competitors, the BGMEA said the exchange rate of Indian Rupee against US dollar in early December 2007 was Rs. 39.83 and it gradually moved up to Rs. 43.95 in September 2008, Rs. 47.83 in October 2008 and it was Rs. 48.66 on October 15 last.
Since December 2007 the Rupee has been depreciated by 22.79 per cent, according to the BGMEA proposals.
Pakistan has also adopted the same monetary policy and its currency lost value against US dollar by 27 per cent between December 2007 and October 2008.
In early December 2007, US dollar exchange rate against Pakistani Rupees was Rs. 60.90 and went up to Rs. 75.71 in early September 2008 and it touched Rs. 77.84 by the end of October.
Besides, Vietnam and Thailand have also revised their currencies exchange rates against the US dollar to help their exporters face the competitive market situation.
The central bank is now examining the BGMEA's proposals.
Country's apparel exporters have proposed to the central bank for introducing dual currency exchange rates to help readymade garment (RMG) exporters face the consequences from possible global economic recession.
The Bangladesh Garment Manufactures and Exporters Association (BGMEA) has submitted proposals to the Bangladesh Bank (BB) seeking policy supports to overcome the ongoing international financial crisis that has already hit many countries across the world.
For exporters (cutting and making) the exchange rate of Bangladesh Taka against US dollar can be fixed at Tk 71.00 from Tk 68.35, the BGMEA said in its proposals.
The central bank officials said that there was no scope to introduce such dual rates in the existing floating exchange rate regime.
For composite industries, the country's apex forum of garment exporters appealed to increase cash incentive from the existing 5.0 per cent to 7.50 per cent.
The BGMEA also suggested reintroducing the export performance benefit (EXPB) scheme to facilitate the exporters' competitiveness in the global market.
"We've sought policy supports from the central bank to face the ongoing global economic recession," BGMEA President Anwar-UL Alam Chowdhury (Parvez) told the FE Wednesday.
"We'll welcome any other form of support from the government which will protect and help the RMG sector to sustain and grow," Mr. Parvez said, adding that RMG exporters need support to continue their business activities.
The BGMEA, quoting their analysis, said that the situation has both risks and opportunities for Bangladesh. "We feel that we can turn the risks into greater opportunities if certain monetary and fiscal policy were adopted urgently," it added.
"We've confidence because a lot of big overseas customers also feel that Bangladesh is a strategically important sourcing destination for them in the global apparel market," the BGMEA observed.
Regarding regional competitors, the BGMEA said the exchange rate of Indian Rupee against US dollar in early December 2007 was Rs. 39.83 and it gradually moved up to Rs. 43.95 in September 2008, Rs. 47.83 in October 2008 and it was Rs. 48.66 on October 15 last.
Since December 2007 the Rupee has been depreciated by 22.79 per cent, according to the BGMEA proposals.
Pakistan has also adopted the same monetary policy and its currency lost value against US dollar by 27 per cent between December 2007 and October 2008.
In early December 2007, US dollar exchange rate against Pakistani Rupees was Rs. 60.90 and went up to Rs. 75.71 in early September 2008 and it touched Rs. 77.84 by the end of October.
Besides, Vietnam and Thailand have also revised their currencies exchange rates against the US dollar to help their exporters face the competitive market situation.
The central bank is now examining the BGMEA's proposals.