Staff Reporter :
Amid the sliding dollar crisis in the country, the central bank has come with the bar not to sanction any credit facility for the importers of luxury items in a bid to easing mounting pressures on foreign reserves.
Now, the importers will have to make full deposit before opening the letter of credits (LC) for importing luxury items.
The luxury goods include an array of items like motorcars, home appliances electronics, toiletries, gold jewelries, readymade garments, electronic items and beverage. The Bangladesh Bank (BB) in a notification on Monday imposed the credit bar to reduce pressure on import expenditure in the economy and to curb the rein of importing luxury items, amid the financial crunch in the country and the volatile global economy.
Earlier on May 10, the central bank had imposed a 75 per cent cash margin on the luxury items but now the cash margin will be 100 percent after the announcement.
However, a minimum margin has not been set for the imports of essential food products, baby food, lifesaving medicines and medical equipment, fuel, capital machinery and raw material for industries, agricultural products and products needed for government projects.
The bankers said that the level of export is low compared with the rising level of imports. As a result, the dollar crisis is deepening. In order to discourage the import of luxury items amid this financial crunch, the central bank is taking multiple initiatives, the bankers said. Against the backdrop of the ongoing global economic instability due to the pandemic and the protracted war in Ukraine, the rescheduling of cash margins on import items will help bolster country’s currency and debt management, the BB said in the notification.
