In a significant move to boost transparency and efficiency in Bangladesh's jute export industry, authorized dealer banks will now directly transfer funds corresponding to export prices of jute products into the accounts of exporter millers.
This new directive, aimed at eliminating irregularities, was issued by the Bangladesh Bank on October 9, affecting all scheduled banks in the country.
Under this revamped procedure, exporter millers will receive their export earnings in either Bangladeshi Taka (BDT) or United States Dollars (USD), providing them with greater flexibility. In the past, financial transactions in the jute export sector were often routed through intermediaries, introducing complications and potential delays.
The directive instructs banks to retain only the commission due to intermediaries, ensuring that the remainder of the export revenue is channelled directly into the accounts of the exporter millers.
Previously, these intermediary agents played a pivotal role in transferring funds, which sometimes led to delays and inconsistencies in payments to the millers.
Jute goods, primarily managed by mill authorities, constitute a vital export product for Bangladesh. However, around 30% of these goods are traditionally handled by intermediaries.
The central bank's recent intervention is expected to rectify the issues related to these intermediaries and facilitate a smoother and more transparent financial flow for jute exporters.
With approximately 300 jute mills and spinners operating in the country, a significant portion of them, specifically 190, engage in the export of jute products. This change in banking procedures is anticipated to ensure that exporters receive their earnings in a more reliable and timely manner, resulting in a positive impact on Bangladesh's jute export industry.
