The Metropolitan Chamber of Commerce and Industry (MCCI) said on Saturday that trading with India using a currency exchange via the rupee instead of the US dollar was not easy as it was not not in the IMF currency basket.
Currently, the IMF’s basket consists of five trading currencies — the US dollar, euro, Chinese renminbi or RMB, Japanese yen and British pound.
MCCI Chairman Md Saiful Islam, however, said there was a need to have a government-to-government discussion and then between central banks for this to happen.
In an exchange of views during a lunch meeting at the chamber’s headquarters with the city’s media, the organization said that trade with India via the rupee and China via the RMB would reassure the reserves. , as the two counties are major trading partners of Bangladesh.
She first proposed the idea to the governor of the Bangladesh Bank.
China is generally the largest trading partner followed by India.
The MCCI noted that import controls could affect the whole trade, as some importers face problems even when importing capital goods.
The MCCI also noted that Bangladesh stands to lose between 8% and 13% of its trade advantage after 2026, when Bangladesh will no longer enjoy trade advantages as a least developed country.
But he felt that there are many opportunities that will be there after graduation.
“Our country’s ranking will be improved and the image, among others, will be broadened after graduation,” Md Saiful Islam said of the dividend the country could reap from the status change.
The entrepreneur also estimated that Bangladesh could offset at least 5% of the erosion of export earnings by improving its efficiency in the manufacturing sector.
The erosion of export earnings can also be offset if there is no political instability and social unrest or if general peace and stability prevail.
The chamber suggested that many regulators now need outsourced inspectors to provide effective services to businesses, indicating that there has been a lack of the necessary managerial staff, thus necessitating the hiring of foreigners for many industries. , especially export sectors such as clothing.
“We have to wait several months, even years, for inspectors because regulators are short of inspectors.”
He says agencies can outsource inspectors and it will improve the ease of doing business.
MCCI points out that export shipping times are increasing and need to be improved.
A 17% improvement in logistics will help improve 7% in the economy.
Islam mentioned that they are working with the tax office to widen the tax net.
“We are in favor of lowering the tax rate and widening the tax net.”
He said the MCCI had succeeded in framing a uniform tax of 12% for all export-oriented industries.
Previously, RMG only took advantage of it to profit from it.
The metropolitan chamber urged relevant authorities to extend the term of business and other licenses to at least five years from the existing year to reduce the cost of doing business and eliminate hassles.