Bangladeshi businesses cannot use Indian rupee for foreign trade as Bangladesh Bank is yet to enlist the currency to settle letters of credit (LCs). BB spokesperson and executive director Md Serajul Islam told UNB that the central bank is yet enlisted Rupee for foreign trade. He said that Bangladesh Bank is reviewing currency diversification in foreign trade to reduce sole dependence on the US dollar. Read:“Use rupee, taka”: India asks exporters to refrain from trading in dollars with Bangladesh Before allowing any foreign currency for trading, the central bank has maintained an exchange stander, and stability in line with the IMF standard, he said. Businesses said if trade between Bangladesh and India happen in local currencies, pressure from falling US dollar reserves and associated ongoing forex market instability can be reduced. They said India is the second largest source of imports of raw materials and other goods for Bangladesh. Industrial raw materials, capital machinery, cotton, yarn, fabrics, and chemicals worth USD 16.19 billion were imported from India in the fiscal year 2021-22. Read:Bangladesh’s forex reserves now $36.90 billion At the same time, Bangladesh exported goods worth USD2 billion to the neighbouring country. On September 15, Bangladesh Bank allowed banks to open accounts in the Chinese currency yuan. IMF has recognized five countries’ currencies as “high-value”. The Chinese yuan was admitted to IMF’s high-value currency basket in 2016. Since then, the yuan has become stronger than ever as per a currency review by the IMF. Read Sri Lanka hopes to reach initial agreement with IMF for help

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is keen to develop broader trade relations with Brazil, the largest economy in Latin America. As a part of this initiative, the apex trade body of the country has signed two Memoranda of Understanding with the Rio de Janeiro Chamber of Commerce and Industry and the Sao Paulo Chamber of Commerce; two of the country's most influential trade organizations. FBCCI President Md. Jashim Uddin on behalf FBCCI signed the MoUs during the visit to Brazil as entourage of State Minister for Foreign Affairs Md. Shahriar Alam, said the trade body on Saturday. The signing between Rio de Janeiro Chamber of Commerce and Industry and FBCCI took place in Rio de Janeiro, the second capital of Brazil on July 20 and Sao Paulo Chamber of Commerce inked the MoU in Sao Paulo, the port city of the country on July 21. Also read: FBCCI called for setting up Eswatini High Commission in Dhaka State Minister Shahriar Alam, Bangladesh Ambassador to Brazil Sadia Faizunnesa and President of Brazil Bangladesh Chamber of Commerce Shahriar Ahmed also witnessed the MoUs signing ceremonies. Earlier, the FBCCI President has had meetings with Apex Brazil, the country's Trade and Investment Development Agency and the main industry representative organization National Industry Confederation (CNI). Issues related to bilateral trade and investment potentials, challenges, and the way forward were discussed in the meetings. The FBCCI President expected the visit will facilitate exchange of delegations in future and bolster bilateral trade relations. Also read: FBCCI wants power rationing for uninterrupted production “Bangladesh now needs to explore and expand new markets. Diversification of export baskets has become essential. Therefore, establishing trade ties with Brazil, the 10th largest economy of the world will add new dimensions to Bangladesh’s export earnings, as well as help expand its footstep in other countries of South America”, he added.

Bangladesh Bank (BB) has extended policy support to June 30 next from December 31, 2021 for external trade transactions considering the pandemic effect on economic activities. A central bank circular said external trade activities of the country are found changing gears to pick up. To facilitate smooth transition, the BB has decided to continue extended supports for trade transactions to June 30. The foreign exchange policy department of the BB issued the notification on Thursday. The usance period (allowable period of time, permitted by custom, between the date of the bill and its payment.) for imports of industrial raw materials including back to back imports, and imports of agricultural implements and chemical fertilizers under supplier’s/buyer’s credit can be extended up to 270 days. Earlier the BB fixed it 180 days for external trade transactions. The notification has also increased loans’ limit USD $ 25 million to $ 30 million till June 30, 2022 from the Export Development Fund (EDF) limit for member factories of BGMEA and BTMA, a garment sector organization. Read: BB fixes loans at Tk 25,000 to Tk1.0 crore for CMSE under CGS Businessmen in the sector say the policy assistance provided by Bangladesh Bank will ease foreign trade and help revive economic activities. Earlier on Tuesday, the leaders of the apparel sector organizations’ met with Bangladesh Bank Governor Fazle Kabir to discuss the current situation. As per discussion the central bank issued the circular extending both the foreign trade transaction period and limit.

China says its foreign trade rose 5.1 percent year on year in June, with exports and imports up 4.3 percent and 6.2 percent respectively, official data showed on Tuesday.   According to the General Administration of Customs, the country registered better-than-expected foreign trade performance in the first half of the year.   Foreign trade of goods went down 3.2 percent year on year in the first half to 14.24 trillion yuan (about 2 trillion U.S. dollars), narrowing by 1.7 percentage points compared with the decrease for the first five months.   Following the turbulence in the first quarter, imports and exports of the second quarter showed signs of recovery and stability, and the exports have risen for three consecutive months, said the administration.