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Dollar dearth hindering Ramadan imports untrue

FE REPORT | February 03, 2023 00:00:00


Dollar dearth hindering the placing of import orders for key Ramadan items is untrue, the central bank has claimed to deflate allegation.

"The information regarding the LC-related problems facing the importers especially for five major Ramadan items is not correct. Importers opened enough LCs for these goods," Bangladesh Bank spokesperson Md. Mezbaul Hoque said at a press briefing at the BB headquarters Thursday.

Giving statistics of the five key Ramadan provisions, he said LCs for importing 565,941.24 tonnes of sugar were opened in January 2023 while the volume during the same period of time a year ago was 511492.84 tonnes.

In the past month, importers opened LCs against 390,853.11 tonnes of edible oils, up from 352,959.99 tonnes recorded in January 2022, while LCs for 224,566.81 tonnes of peas opened last month. The figure of import orders for peas in January 2021 was 265,596.47.

LCs for importing 42,562.81 tonnes of onions were opened in last January against 36,225.85 tonnes recorded in the same period a year ago, while LCs for importing 29,481.63 tonnes of dates in January 2023 against LCs of 16,498.24 tonnes a year back.

"So, there are enough LCs for key Ramadan items already opened. The goods are expected to come before the holy month of fasting. Don't worry," he said.

"There will be no shortfall of supplies of key Ramadan essentials if all agencies work together with intensive monitoring activities over the market," the central bank spokesperson said.

Responding to a question, Mr Hoque said the BB always comes up with necessary policy interventions to

overcome all forms of problems banks and financial institutions face.

To protect banks amid the ongoing dollar shortfall, he said, the BB sold US$ 9.20 billion in the first six months of the ongoing fiscal to meet foreign-currency obligations of banks. BB sold US$ 7.60 billion in FY'22.

"But we need to be careful that selling more dollars means more pressure on the local currency as we have already observed. We should not create any fresh economic problem while solving others," he added.

However, the importers, especially small ones, have claimed that some banks are reluctant in opening LC ahead of Ramadan because of dollar crunch.

Earlier on January 05, 2023, the commerce ministry requested the central bank to set aside a certain amount of dollar to facilitate the import of six daily commodities to ensure their smooth supply in the upcoming Ramadan-the month of fasting and religious festivals that usually sees buying binge.

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