Business Report :
Exporters will be paid as per the dollar rate on the day when encashing export proceeds from now on, the central bank said in a circular today (20 May) aimed at giving breathing space to traders.
As a result, even if the export proceeds are encashed later, exporters will have an opportunity to get a higher dollar rate.
Explaining the matter, a senior central bank official told The Business Standard that the obligation to bring export proceeds into the country within 120 days of the export shipment has long existed.
However, a part of these proceeds do not reach the country on time.
Earlier in March last year, the central bank had issued a circular saying that exporters will be paid as per the dollar rate on the 120th day of export shipment, even if the proceeds come later.
The circular also said at the time that the decision would be subject to change if the dollar rate increases.
However, if the dollar rate falls, the exporter will get the rate on the day the proceeds arrive.
As per the new decision, exporters will get the dollar rate of that day on the day they encash the export proceeds.
The new circular removes the confusion regarding the dollar rate for the export proceeds.
“It’s not like export proceeds repatriation is delayed because we want it to be delayed,” Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said.
He said, “Buyers delay our payment under various pretexts. In some cases they demand discounts. We then have to negotiate a lot to get our payments.
“We were already suffering due to non-arrival of export proceeds on time. Now we would have suffered more if the dollar rate of the export proceeds had not been given as per the present time,” he stated, applauding the central bank’s latest decision.
“We express our gratitude to Bangladesh Bank on behalf of Bangladesh’s garment industry and export-oriented industry family for removing this obstacle through circular,” said the BKMEA president.
A few days ago, as part of implementing the “crawling peg” of the exchange rate, the central bank increased the price of the dollar by Tk7.
However, due to the previous instructions given by the central bank, the exporters were getting lower dollar rates against their export proceeds.
The new instructions have been issued to remove that problem.
Under the new rules, exporters will get Tk117-118 per dollar against their export proceeds.