Syful Islam
A move is afoot to start direct banking arrangement and border trade to accelerate business between Bangladesh and Myanmar.
A Bangladesh delegation led by Deputy Governor of Bangladesh Bank Ziaul Hasan Siddiqui will visit Myanmar from February 19 to 26 to have detail discussion with proper authority.
Other members of the delegation include Trade Consultant of Commerce Ministry Shafiqul Islam and Syed Mahmudul Huq, president of Bangladesh Myanmar Business Promotion Council and Managing Director of NCC Bank Mohammad Nurul Amin.
Bangladesh recently formed a working group comprising government and private sector to deal the issue. Deputy Governor of Bangladesh Bank Ziaul Hasan Siddiqui is head of the working group.
Sources said during the visit delegation members will visit China and Thailand border market with Myanmar and discuss with respective authority how to start direct banking arrangement or opening direct letter of credit. The delegation will also explore the ways of opening a border market between the two countries.
At present traders can import paddy, wheat, maise, edible oil, palm oil, onion and fish from Myanmar worth up to US$20,000 in a single consignment while for other goods its limit is up to US$10,000. These trading can take place without opening letter of credit but through bank draft. As a result importers have to issue several bank draft to import more goods resulting high import and carrying cost.
Earlier, Sonali Bank and AB Bank were issuing bank draft for these trade but now only the Sonali Bank is doing so. A meeting of the working group last week revealed that now only the Sonali Bank is issuing draft for this trade. They said starting of trading through letter of credit will help resolve the problem.
Managing Director of NCC Bank Mohammad Nurul Amin said his bank is importing goods from Myanmar by opening LC through Singapore banks.
The meeting also identified various problems regarding goods carrying through waterways. They said existence of a similar working group from Myanmar will also help resolve the problems faster. The meeting also emphasised on signing a MoU between the central bank of two countries.
In the meeting working group leader Ziaul Hasan Siddiqui said as Myanmar is not member of ICC, there will be no international legal authority if there is any dispute over LC. He emphasised on keeping option of two sides acceptable dispute settlement/ arbitration in the LC.
Bilateral trade between Myanmar and Bangladesh now stands at US$140 million. The two countries were in tug of war two months back over maritime boundary following Myanmar’s move of geological survey in the Bay of Bengal.
Courtesy: nation.ittefaq.com
