Import costs are expected to rise towards the end of the current fiscal owing to recent increase in the number of LCs (letter of credit) opened for buying capital machineries and wheat.
During the first eight months of the current 2012-13 fiscal (July-February), the number of LCs opened were less compared to the same period last year.
But, in March and April, opening of LCs began to surge.
According to Bangladesh Bank, LCs amounting to $29.96 billion have been opened from July-April in the current fiscal year. Last year same duration, the amount was $30 billion.
The surge in LCs were reported from March this year.
In February, LCs equivalent to $2.87 billion were opened. Last year February was $3.06 billion.
But, in March, the LCs opened rose to $3.49 billion. Last year March, LCs worth only $3.01 billion had been opened.
In April, $3.32 billion were spent opening LCs – a 19.28 percent rise compared to last year.
Bangladesh Institute of Development Studies (BIDS) Research Director Zaid Bakht saw this as a positive trend.
“Imports were down in the first six months (current fiscal). LCs rose in February for industrial imports and some other goods. At one point I thought import costs will come down by 10 percent this year.”
“But now it seems it will at par with the last fiscal, only a minor difference is expected,” Bakht said.
He said that increased import of industrial machinery and similar material will lead to greater productivity which will have a positive impact on the economy.
“Now, there is no need to import rice because of bumper produce in the last few seasons. Whatever expense has increased in food, it is mostly for importing wheat.”
“The brightest side is reduced expense in import of fuel oil. That will lead to drop in government subsidies as well.”
Bangladesh Bank Forex Reserve and Treasury Management division General Manager Kazi Saidur Rahman told bdnews24.com that dollar exchange rates were stabilising because of the rise in LCs. “I hope Dollar rates will not go down again.”
On Tuesday, inter-bank exchange rate stood at Tk77.80 per Dollar.
Source: bdnews24
