Despite the increase in remittances and export revenue over the last few months, the country’s economy has come under some pressure to meet the cost of importing goods. The situation reached such a stage that in the span of a few days, the value of money had to be devalued against the dollar. Besides, Bangladesh Bank had to take several more steps to overcome this pressure. Bangladesh Bank instructed the banks to provide necessary dollars as well as discourage the import of luxury goods. As a result of these measures, import pressure has already eased.
Bangladesh Bank’s updated report shows that the upward trend in import expenditure over the last few months has come down considerably. According to the Bangladesh Bank, the import expenditure was 832 crores and 48 lac dollars in February. The next month, in March, the import expenditure was 772 crores and 46 lac dollars. That means 60 crore dollars less was spent last month compared to the previous month.
According to the central bank, throughout December, January, and February, more than 8 billion dollars have been spent on imports. It dropped to 7 billion dollars in March.
According to the Bangladesh Bank, the cost of importing goods increased by 25% in March compared to the same period last year. However, import expenditure increased by more than 50% in February compared to the same period last year.
According to the data of Bangladesh Bank, the overall import expenditure has increased by 46.68% in the last 8 months from last July to February. In comparison, in the nine months from July to March, the import expenditure has increased by 43.84%. In other words, the overall import expenditure has decreased by 3% as a result of one month’s reduction in import expenditure.
According to the Bangladesh Bank, a few years ago, the total import duty that had to be paid was 3.5 billion to 4 billion dollars. Now it has doubled.
According to the data of Bangladesh Bank, in the first month of the current fiscal year, the import duty that had to be paid was about 5 billion dollars. Last February it increased to about 8.5 billion dollars.
According to the central bank, import expenditure has risen sharply since the pandemic situation improved. Before the outbreak of COVID-19 in March 2020, the country spent an average of 4 to 4.5 billion dollars a month on the import sector. During the pandemic, it dropped to an average of 3 to 3.5 billion dollars.
But since the beginning of the current 2021-22 fiscal year, there has been a surge in imports. In July, the first month of the fiscal year, the import of goods was 5.14 billion dollars. It rose to 6.58 billion dollars in August. In September, it reached 7 billion dollars. The cost of importing goods in October was 7.11 billion dollars. It rose to 7.85 billion dollars in November. In December, it surpassed the 8.44 billion dollar milestone. Bangladeshi businessmen and entrepreneurs imported 8.33 billion dollars worth of various goods in January and spent 8.32 billion dollars on imports in February. Imports in March cost 7.72 billion dollars.
Bank officials say that the new directive issued by Bangladesh Bank will soon ease the import pressure. Meanwhile, the central bank has tightened its grip on imports of less-needed goods and luxury goods to overcome the dollar crisis. In other words, from now on, the cash margin rate has increased from 50% to 75% to open LCs. In the latest move taken by Bangladesh Bank on Tuesday (10 May), LC’s margin rate has been tripled for importing luxury goods like cars, TVs, refrigerators, and ACs from abroad. However, the previous guidelines on margin loans for emergency and daily essential imports will remain in force. Earlier, on 11 April, Bangladesh Bank imposed a one-time ban on imports of non-emergency products. In the case of opening an LC, it was instructed to conserve a minimum of 25% cash margin rate. Earlier, the rate was fixed by the bank on the basis of its relationship with the customer.
The new directive to banks is stricter to discourage imports of luxury cars and household goods. In these cases, it has been asked to conserve a minimum of 75% cash margin to open bonds on imports of motor vehicles like sedans, cars, or SUVs and electric and electronic home appliances.
On the other hand, in the same circular, it has been directed to maintain a minimum cash margin of 50% for the opening of bonds against imports of all other commodities except some emergency and specific sectors’ products.
