The payment of import bills increased significantly in June due to a rise in payment of bills for food products imported to meet Ramadan demand.
According to the latest BB data released on Thursday, the settlement of letters of credit registered 30.58 per cent growth in June compared with that of a negative growth of 12.98 per cent in the corresponding month of 2012.
The total import bill payment stood at $2.99 billion in June this year. It was $2.29 billion in June 2012 and $2.63 billion in June 2011.
A BB official told New Age on Thursday that the payment of import bills maintained a declining trend in the just concluded fiscal year, but it increased in June due to import of commodities to meet Ramadan demand.
The import of sugar, edible oil, dates, pulses, onion and ginger rose significantly in June as the demand for the commodities usually rises in Ramadan, the fasting month for Muslims, he said.
The import of sugar increased to $49.15 million in June 2013 from $18.29 million in June 2012, that of crude edible oil to $68.29 million from $51.23 million, that of dates to $2.64 million from $0.56 million, that of pulses to $60.67 million from $25.96 million, that of onion to $10.09 million from $6.36 million, and that of ginger to $4.58 million from $1.84 million, the BB data showed.
The import of petroleum and petroleum products also increased in June as the products registered a payment of $645.46 million from $174.28 million in June 2012.
The BB official said that the increase in the import bill payment in June was a temporary phenomenon as the import of capital machinery and industrial raw materials maintained a decreasing trend since July of the FY 2012-13.
The import of capital machinery decreased to $110.86 million in June, 2013 from $130.76 million in the corresponding month of 2012.
Besides, the LC opening or import orders decreased massively in June meaning that the import payments will decline in the months to come.
The BB data showed that the LC opening or import orders posted a negative growth of 17.03 per cent in June compared with that of a 24.13 per cent during the same month a year ago.
In June 2013, LCs worth $2.73 billion were opened by the banks compared with LCs worth $3.29 billion opened in June 2012. LCs worth $2.65 billion were opened in June 2011.
Another BB official said the country’s businesspeople took a ‘wait and see’ approach in expanding their investment due to the recent spates of political violence ahead of the national elections.
Their attitude to expanding the industrial units has already put a negative impact on the import of capital machinery, industrial raw materials and intermediary goods, he said.
The stagnant situation may continue till the next national elections, he said.
Due to the lower import bill payment, the foreign exchange market has plunged in a volatile situation as the value of the US dollar depreciated significantly against the local currency.
The BB purchased a record amount of greenback worth $5.11 billion in the FY 2012-13 and it continues to buy the currency since the beginning of this new fiscal year.
The central bank has already purchased dollar worth $15.30 crore this month in a bid to avoid the devaluation of greenback against the taka.
-With New Age input
