FBCCI urges finance minister to ensure dollar rate fixed for LCs 

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Monday urged the finance ministry to take steps to ensure the dollar rate is fixed for Letters of Credit (LCs) opening to maintain the commodity supply chain. 

In a meeting with Finance Minister AH Mahmood Ali, the apex trade body President Md Mahbubul Alam also requested for creating equal opportunities for small and medium businesses in LC opening, says a release. 

The dollar crisis for more than a year coupled with a sharp decline in taka's value against the US dollar has pushed up the price of goods in the country, the FBCCI leaders told the minister. 

According to available central bank data, LC opening for consumable goods fell by around 22% during the first half of the current fiscal year. 

In two years, the value of taka against the greenback has fallen by nearly 30%. The real price drop will be more as the traders say they have to pay more than the official rate of Tk110 to open LC.

As a result, the prices of consumer goods are continuously increasing in the local market, also shooting up inflation. 

Inflation has hovered above 9% for the past year or so, compared to a normal range of 5% to 6%. Inflation edged up to 10% August, the highest in 12 years, FBCCI told the finance minister citing data of the Bangladesh Bureau of Statistics (BBS). 

FBCCI urged Mahmood to make the upcoming budget business-friendly alongside keeping the supply chain in order to keep the price of essentials low. 

The FBCCI president highlighted the need for improving relations between the National Board of Revenue (NBR) and the private sector and wanted to work closely with different government agencies and the NBR to improve the business climate. 

"Without expanding businesses or industries in the country, it is possible to increase government revenues at a significant rate by way of simplifying tax administration and ensuring its transparency and accountability supported by automation," Mahbub told the finance minister. 

In reply, the finance minister assured that the proposal of FBCCI will be seriously considered in the next budget.