Bangladesh knitwear exporters call for fixing dollar rate at Tk 110.70

Bangladesh knitwear exporters recently called for re-fixing the US dollar rate upward at Tk 110.70 each from Tk 99 to encash export proceeds as in case of remittance earnings. The step would help them survive amid local and global shocks and maintain harmony between export and import rates. The buying-selling gap should not be more than a taka, they said.

Bangladesh Knitwear Manufacturers and Exporters Association executive president Mohammed Hatem made the request to the central bank in a letter.

The sector's production cost has gone up significantly with the rise in global prices of oil, transportation, raw materials and other logistics, and as a result, it has become tough to make the desired profit through exports, bangladeshi media reports cited the letter as saying.

The exporters are also incurring huge loss due to the difference between import bill payments and export proceeds encashment in dollar, Hatem explained, offering four proposals to bring harmony in imports and exports.

These include consulting BKMEA, the Bangladesh Garment Manufacturers and Exporters Association and the associations of bankers and foreign exchange dealers while fixing dollar rates.
Dollar exchange rate for the exporters is Tk 99, while the banks are paying at a rate of Tk 105-106 for back-to-back letter of credit or other import bills.

The Bangladesh Textile Mills Association also made a similar request last month.