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The banks had Tk 26.98 crore in subsidiary ledger until September last year, which the country’s exporters are supposed to get against their export proceeds, found the Bangladesh Bank.
According to central bank sources, the regulator noticed in 2023 that a big portion of exporters did not repatriate export proceeds timely into the country.
The same year, the central bank issued a circular stating that if any exporters fail to return export proceeds within 120 days, then the exporters will get the previous rate.
A senior central bank official, on condition of anonymity, told The Business Post, “After the circular, export proceeds started to increase. The central bank issued this circular in March 2023.
“In this circular, the delayed realisation should be held in subsidiary ledgers in accordance with the instructions. After the circular, banks followed the instructions to return the export proceeds in a timely manner.”
Later, the central bank issued another circular in October last year, directing all banks that export proceeds are allowed to be encashed in the exchange rate currently in effect. This flexibility remained till December 2023.
However, after issuing the circular, many export-oriented trade bodies complained to the central bank that they want the realized rate within the prescribed period.
Another central bank official, preferring to be anonymous, said, “The flexibility was until December 2023. Moreover, the central bank has not published a circular related this issued after 31 December last year, that means if any exporters failed to repatriate exports proceeds within the 120 days, they will get the previous rate against the per USD.
Commenting on the issue, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said, “The central bank does not cooperate with us, because the regulator decision regarding export proceeds is one-sided.
“As an exporter, we always try to repatriate export earnings into the country timely, but we could not bring back the export proceeds due to several difficulties.”
A senior official of the central bank said, “Every month Bangladesh Foreign Exchange Dealers Association (BAFEDA) and Association of Bankers, Bangladesh (ABB) have been fixing the USD rate for export proceeds repatriation since September 2022.
“As a result, the exporters were delaying deliberately to make more profits. The central bank is trying to increase the inflow of the USD though the banking channel due to the ongoing USD crisis in the country.”
