bdnews24.com :
Bangladesh is going to settle a record $1.17 billion in payment for imports to Asian Clearing Union (ACU) this week.
Analysts describe as ‘comfortable’ the rise in import expenditure for the economy.
The central bank, which clears payments for imports with ACU once in two months, will pay the union Tk 1.17 billion by Thursday.
Earlier once in 2011, Bangladesh paid record $1.16 billion to ACU.
Bangladesh Bank Governor Atiur Rahman told bdnews24.com: “The economy again looks comfortable with peace back after the (parliament) polls.”
He said that businesspeople and industrialists are experiencing a sense of relief and that is having a positive impact on imports and investments.
The governor said import of machinery and commodities, including capital machinery and industrial raw materials, which are necessary for development of industries, rose in the first eight months of the current fiscal year beginning on July 1. Political unrest during the whole of last year adversely impacted the economy.
Import of capital machinery declined due to stagnation of investment and business. According central bank statistics, during July-Feb period Bangladesh imported goods worth $26.14 billion, a 16.42 percent jump over the same previous period.
During the period, opening of letters of credit (LC) for import of capital machinery rose by 54 percent, industrial raw materials by 5 percent and fuel by 15 percent.
Research Director of Bangladesh Institute of Development Studies (BIDS) Zaid Bakth thinks imports are increasing as the congenial environment for investment has returned following the election.
He told bdnews24.com: “A congenial environment for investment has been created with the return of stability. If the import of capital machinery, industrial raw materials and other goods of industrial sector increases, it will positively impact on investment.”
Governor Atiur Rahman said import of all type of commodities, excepting luxury goods, went up during the eight months.
Bangladesh Bank’s forex reserve and treasury management department General Manager Kazi Saidur Rahman told bdnews24.comthat the reserves would remain around $19 billion following the ACU payment.
At close of trade on Monday, the forex reserves stood at record $20.47 billion, an amount equivalent to six months’ payment for imports.
Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar are members of the Asian Clearing Union (ACU). They settle payments among them once in two months on a multilateral basis.
According to central bank statistics, Bangladeshis working abroad sent home $11.73 billion in the first 10 months of the current FY. The figure is 4 percent less than the amount remitted during the same previous last fiscal.
Dollar purchase on Bangladesh Bank has continued to buy dollars from the market. 2 million dollars were bought by it on Monday. Saidur said $4.3 billion was purchased in the current FY.
“The dollars are being bought to maintain stability in the market,” he added.
