Scrap vessel imports drop to a 4 year low in 2022

The Metropolitan Chamber of Commerce and Industry (MCCI) has recently released its projections for imports, remittances, and foreign exchange reserves for the next quarter of this fiscal year. According to their estimates, imports are expected to reach $5.68 billion in September, up from $5.52 billion in August and $5.39 billion in July. Similarly, remittances are projected to grow to $2.29 billion in September, an increase from $2.18 billion in August. The foreign exchange reserves are expected to rise to $27.95 billion by the end of September.

Bangladesh is experiencing a decline in imports of capital machinery, industrial raw materials, and intermediate goods for the second consecutive fiscal year, signaling a slump in private investment and dim prospects for job creation. 

Imports of green chillies, tomatoes, and roe-katla fish through Jessore's Benapole land port have increased, with 230 metric tons of green chillies, 1,656 tons of tomatoes, and 1,026 tons of fish imported from August 1 to 8. However, overall trade through the port has decreased. 

The recent introduction of a 'crawling peg' system allows banks to sell dollars at up to 2.5% above the intermediate rate of Tk 117, setting a maximum rate of Tk 120 for import settlements. During a meeting at Bangladesh Bank, the governor clarified this policy and emphasized the timely settlement of all foreign payments.

The number of Letters of Credit (LCs) for imports has reportedly increased compared to previous years. In FY '24, LCs totaled $68.69 billion, up from $68.24 billion in FY '23. However, in the first half of FY '23, LCs were $34.78 billion, while for the same period in FY '24, they were $32.92 billion. With the start of the new fiscal year, LC openings have risen, reaching $4.37 billion in July and $6.1 billion in August.

The government is considering waiving demurrage charges for additional storage time at Chattogram port due to recent unrest. State Minister for Shipping announced this potential waiver, highlighting the government’s previous decision to waive Tk 500 crore in storage rents during the COVID-19 pandemic.