Uniform USD rate delay makes importers suffer

The uniform US dollar exchange rate set by the Bangladesh Bank is yet to benefit importers as banks are taking time to implement it.

The central bank set the uniform interbank exchange rate of the American currency at Tk 89 on Sunday. In case of bills for collection (BCs) or import financing, the rate was set at Tk 89.15 per dollar to stabilise the volatile foreign exchange market, and minimise import cost.

But importers said they were not getting the official rate while importing goods, which was increasing the costs of raw materials and imported products.

On the other hand, banks said it would take time to implement the uniform rate.  S Alam Group Senior General Manager Kazi Salahuddin Ahammad said the government was trying to stabilise dollar prices but that had not happened yet.

He said it was not certain when the official rate would be implemented. “Hopefully, the Tk 89.15 rate will be implemented by this week.”   

City Group Director Bishwajit Saha told The Business Post the government had made the right decision to set the uniform rate but implementing it would take time. “Everything will be clear within a day or two.”      

Mohammad Mustafa Haider, group director of TK Group, said most banks were following the central bank rate while selling the dollar to importers.

“But I have been informed that a few banks have not implemented the rate yet,” he said.

Another importer who is involved in electronic goods and parts business said banks are profit mongers and reluctant to implement any Bangladesh Bank decision.

He suggested the BB set the uniform exchange rate through circular like those affecting the highest ceilings for bank deposit and lending rates.

Mercantile Bank Additional Managing Director Mati ul Hasan told The Business Post dollar prices had come down to a reasonable level after fixing the uniform rate.

“But it will take more time to adjust the rate. Banks, including ours, are trying to adjust the rate with the uniform rate,” he said. 

He also said banks could not get the dollar at a lower rate from remitters and exchange houses, which was a major challenge in adjusting the rate with the uniform rate.

Bangladesh Bank Executive Director and Spokesperson Md Serajul Islam said the central bank was yet to get any complaints about banks not implementing the uniform exchange rate.

“If an importer or someone else complains to the central bank against any bank, we will take further steps,” he added.

Importers said many of them were not settling letters of credit (LCs) opened earlier as they were waiting for banks to implement the uniform rate, causing LC settlements to fall.

They further said there would be no problem in opening new LCs even if dollar prices fluctuated, adding new LCs were being opened regularly.

Nadim Hassan, an importer of garment materials, said he had refrained from opening LCs due to increased dollar prices.

“The bank I usually make transactions with informed me it was selling the dollar at the official rate. That is why I have planned to open new LCs.”

Mirza Elias Uddin Ahmed, managing director and chief executive officer of Jamuna Bank, told The Business Post they were following the uniform rate to settle LCs. He said a few banks might have imposed a higher rate and the central bank should take strict action against them.

All banks would have to work together to implement the uniform rate for exchange houses, added the banker.

Md Rafiqul Islam Shohel, managing director of Alpha Construction Materials, said banks had offered him Tk 94-95 per dollar to open LCs a week earlier. “But I have recently opened an LC with Al-Arafah Islami Bank and paid Tk 88 per dollar.”