Relaxation of process to increase remittance inflow

BB governor says at views-exchange with DCCI

Published : 24 Jan 2023 09:22 PM

Easing the process of sending remittance including the waiver of relaxation of required documents and fees by the local banks and engaging Mobile Financial Services to bring remittance home by the central bank, the country’s remittance inflow increases in recent time and will increase further in future, said Governor of Bangladesh Bank Abdur Rouf Talukder

He mentioned that the current situation of LC may ease within the next couple of months. 

The Governor made the remarks while the Board of Directors of Dhaka Chamber of Commerce & Industry (DCCI) called on the Governor at the Central Bank office on Monday. 

Governor  further mentioned that that we are facing three major challenges now and these are ongoing Russia-Ukraine war, interest rate hike by the Federal Reserve and recent Covid situation in China. However, he said that despite these challenges, our economy is quite stable.

He reaffirmed that Bangladesh Bank has been relentlessly working through relevant policy measures and actions like lowering the LC margin to ensure seamless supply of essential commodities in the market during the upcoming Ramadan. 

While addressing the DCCI President Barrister Md. Sameer Sattar termed the public-private partnership (PPP) initiative as a verycrucial to tackle any economic challenge. 

Sameer Sattar called upon the Bangladesh Bank to assist the commercial banks with adequate foreign exchange supply to settle the LCs to ensure the continuous supply of essential commodities during the upcoming month of Ramadan.  

During the discussion, the DCCI President Barrister Md. Sameer Sattar thanked Bangladesh Bank for unveiling a timely Monetary Policy (MPS) that would help both private and financial sector to turn around as the MPS includes some instrumental policies and guidance. 

He also hailed the initiative of continuing the re-financing scheme of Taka 50 thousand crore for agriculture, CMSMEs and import substitute industries. 

He further emphasized on necessary reforms, like easing the documentary requirements for CMSMEs to access finance and, especially, in relation to Credit Guaranty Scheme for the better interest of the CMSME community. 

Besides, he urged for easing the documentation process for young and innovative startups so that they can avail loans easily.  

He also underscored the need for enhancement of the private sector credit growth to accelerate the contribution of private sector in the economic resurgence, in this given geo-economic context. 

In addition, he suggested to ensure good governance to contain the soaring non-performing loans (NPL) by taking stern measures for quick loan recovery focusing on habitual defaulters as well as necessary reforms to regulations in the banking sector. 

DCCI Senior Vice President SM Golam Faruk Alamgir (Arman), Vice President Md. Junaed Ibna Ali and members of the Board of Directors were also present during the meeting.