The government is likely to tighten its grip on the import of luxury goods including cars, cosmetics and fruits after the present restrictions to this end failed to improve the situation of a prolonged dollar crisis. 

It is also expected to reduce gaps in multiple exchange rates of dollar to increase the inflow of remittance by the expatriate Bangladeshis working in different countries.

Such decisions were taken at a review meeting held at the prime minister’s residence Ganabhaban, according to the officials that attended the meeting.  

Former Bangladesh Bank governor Salehuddin Ahmed termed the new measures ineffective to overcome the current challenges facing the economy since early this year due to shortage of greenbacks.

The country must stop money laundering to check capital flights and tame the current dollar shortage, he told New Age.

The number of reports on suspicious transactions and activities related to money laundering rose by 62.33 per cent year-on-year in the country during the financial year 2021-2022.

On October 31, Bangladesh Financial Intelligence Unit made the disclosure while experts fear that such a trend would contribute to the ongoing dollar crisis and affect the country’s overall economy.

Chaired by prime minister Sheikh Hasina, the review meeting was attended, among others, by Bangladesh Bank governor Abdur Rouf Talukder, commerce secretary Tapan Kanti Ghosh, National Board of Revenue chairman Abu Hena Md Rahmatul Muneem and finance secretary Fatima Yasmin.

According to officials, the government is likely to increase import of liquefied natural gas following demand by the businesses.

They said that the meeting decided to close the gap in multiple exchange rates of dollar for import and export.  

To exemplify, the officials mentioned that the current rate of dollar for export was Tk 99, and for import it was Tk 105 that interrupted the normal inflow of dollar for the import-dependent county like Bangladesh.

The meeting also decided to implement a previous proposal from the commerce ministry to restrict import of more than 100 types of goods further.

Since April the Bangladesh Bank had taken a series of measures to discourage import of luxury goods and less important goods in the wake of shortage of foreign currency.

The central bank imposed 100 per cent margin against the import of luxurious and nonessential items, including Sedan car, sports utility vehicles and multi-purpose vehicles.

It also brought several other items including gold and gold ornaments, precious metal, pearl, readymade garments, leather goods, cosmetics, furniture and decorative items, fruits and flowers, non-cereal food, processed food and drinks, alcoholic drinks under 100 per cent cash LC margin.

The growing import surge, however, could not be checked as it rose by 16.95 per cent to $12.7 billion in July-August from $10.85 billion in the same months in the previous year.

The government also backtracked on maintaining restrictions on foreign tours and trainings by public officials within a couple of months of the issuance of the decree despite the ongoing shortage of dollar.