Prompt export proceeds to get Tk0.50 more per dollar

The Bangladesh Foreign Exchange Dealers' Association (Bafeda) has decided to increase the dollar rate by Tk0.5 to Tk103.50 to encourage exporters to bring export proceeds faster.

The Bafeda on Sunday gave verbal instructions to the banks to implement this unofficial decision quickly. 

The directive was made effective from Sunday.

The directive said that if the payments for exports made last November and December are brought by 15 February, the export proceeds will be given a higher rate of Tk0.5 against the dollar.

Earlier on 31 January, the Bafeda and Association of Bankers, Bangladesh (ABB) decided the rate as Tk103 per dollar for all types of export proceeds.

Last Thursday, when Bafeda Chairman and Sonali Bank CEO and Managing Director Md Afzal Karim met with Central Bank Governor Abdur Rouf Talukder, the governor directed the Bafeda chairman to take steps to bring in export proceeds quickly. The rate of export proceeds has been increased following that directive, said Bafeda sources.

Mutual Trust Bank Managing Director Syed Mahbubur Rahman told TBS that generally, exporters get up to 120 days to bring the proceeds but if they want, they can bring it earlier. Many of our export proceeds are delayed. The Bafeda has taken this decision to encourage exporters to bring proceeds quickly.

Eastern Bank Ltd Managing Director and CEO Ali Reza Iftekhar also thinks that this decision by Bafeda is very timely as a higher rate would encourage exporters to bring their income, which will help reduce the current dollar crisis in the bank to some extent. The dollar crisis will be gradually reduced through such small decisions.

In an online meeting of ABB and Bafeda on 31 January evening, it was decided to increase the dollar rate of exporters by Tk1. The banks implemented this decision on 1 February. 

At the beginning of January, the two associations decided on the rate as Tk102. 

Before that, on November 30, the rate for export proceeds was raised from Tk100 to Tk101 per dollar, which was made effective from 4 December.

ABB Chairman Selim RF Hussain said, "We anticipate from the situation that many exporters are delaying or withholding their proceeds. We are trying to motivate exporters so that they bring their proceeds a little early and the incoming flow of proceeds increases." 

Bangladesh Garment Manufacturers and Exporters Association Vice President Md Shahidullah Azim said, "The developed countries are under inflationary pressure because of the Russia-Ukraine war. Hence, the buyers there are delaying payment to us in many cases. Now, exporters will request buyers to remit payments quickly due to the increased dollar rate. As a result, the export proceeds will increase to some extent."