Cover gaps in export proceeds repatriation: BB

Bangladesh Bank Governor Adbur Rouf Talukder has asked managing directors of thirteen banks about a portion of export proceeds that has yet to be repatriated into the country.

This discussion took place at a meeting between the central bank and Association of Bankers, Bangladesh (ABB) on Wednesday.

Speaking to reporters after the meeting, Bangladesh Bank Executive Director and spokesperson Mezbaul Haque said, “The central bank observed that a segment of export earnings are not coming into the country.

“Foreign buyers deferred some of these export proceeds. But we have the pressure of back-to-back LCs.”

He added, “The central bank is concerned about any economic volatility. We have taken many necessary steps to curb inflation. The regulator is selling USD from its forex reserves. So, the country's economic situation lacks flexibility.

“At the meeting, the central bank governor also discussed issues relating to rising non-performing loans (NPLs) in the banking sector, and declining remittance inflow.”

After the meeting, ABB Chairman and BRAC Bank Managing Director Selim RF Hussain told media, “The country’s banks will not offer remittances at a rate similar to the kerb market.

“Even if the banks offer remittances at kerb market rates, it would have little impact on curbing the hundi system.”

Hossain then said, “If we fix the USD rate at Tk 130, the hundi lenders will then pay Tk 140. The point is that the exchange rate does not matter to those who launder money abroad, because they will do it at any cost.

“Similarly, the people who are involved in hundi will do it at any cost as well.”

He added, “The Bangladesh Bank governor recently went to Morocco to attend the annual meeting of the International Monetary Fund (IMF) and World Bank. We discussed those meetings.

“But there was no discussion on the USD exchange rate at Wednesday’s meeting.”

Bangladesh Bank Governor Adbur Rouf Talukder has asked the managing directors of banks to take steps for repatriating due export proceeds as soon as possible, he told reporters.