• Page Views 67

Cash dollar import unlikely

The import of cash dollars, necessitated by a surge in demand, is unlikely after the National Board of Revenue has refused to provide the 29 percent duty waiver on the purchase.

The country experienced a cash dollar crunch last month after the stock came down to $7 million from $17 million in March last year.

Subsequently, Bangladesh Bank directed Standard Chartered Bank to bring in $10 million in cash and asked the NBR last month to extend the tax waiver. Earlier in 2011, the BB imported $15 million through StanChart.

The revenue authority is unwilling to give the tax waiver as it says the law does not permit it.

Asked about the NBR’s stance on the tax waiver, its Chairman Md Nojibur Rahman declined to comment.

The NBR is treating the cash dollar as a commodity and levying the duty on the monetary value of the currency rather than the weight of the product, making it an expensive venture for StanChart.

“We have applied to the NBR for the waiver and are awaiting their response,” said Bitopi Das Chowdhury, StanChart’s head of corporate affairs.

If the NBR does not waive the tax, the bank will not be interested in importing the dollars as the cost will be high, said SK Sur Chowdhury, deputy governor of BB.

The revenue authority instead suggested the central bank import the cash dollars by itself as it is exempted from any duties.

Meanwhile, there has been a piecemeal improvement in the situation, with $11.7 million now available. Some businessmen who had cash dollars on them deposited the amount to banks soon after the BB’s decision to import came to light, as it would have pushed the rate of dollar down.

As of January 31, the gap in the dollar-taka exchange rate between the kerb market and the banks has come down to Tk 3 from more than Tk 4 a week earlier.

The interbank exchange rate stood at Tk 79.12 and in the kerb market it was Tk 82.

The gap is expected to narrow further as high-denomination notes are gradually becoming more widely available in India, a major tourist destination for Bangladeshi nationals.

Thousands of tourists and patients from Bangladesh visit India every year and they take cash dollars with them for convenience. Demand for the greenback goes high in winter, when hundreds of Bangladeshi tourists visit India.

Source: Daily Star, Dhaka, Bangladesh


33 credit system: Ruet VC confined since last evening

Next Story »

13 killed in Pakistan avalanche

Leave a comment


  • 7 dry fruits you should include in your diet to stay healthy

    3 weeks ago

    Rich in proteins, vitamins, minerals and dietary fibre, dry fruits make for a delicious and healthy snack. Health experts recommend eating dry ...

    Read More
  • Ramadan Calendar Sehri and Iftar Timing 2017 Bangladesh

    3 weeks ago

    Ramadan Calendar Sehri and Iftar Timing 2017 Bangladesh

    Read More
  • Healthy food habits for Ramadan

    4 weeks ago

    It is common knowledge that fasting has myriad health benefits. Besides increasing immunity, endurance, and the ability to face challenges, fasting contributes ...

    Read More
  • Summer tips for pregnant women

    2 months ago

    Body temperature of a pregnant woman always remains a bit higher than normal, so added external heat obviously makes her feel uncomfortable. ...

    Read More
  • Eating less salt does not necessarily lower your blood pressure

    2 months ago

    Eating less salt may not lower your blood pressure, a major new study has found contradicting the popular belief. Researchers from Boston ...

    Read More
  • How mobile apps have changed our lives

    2 months ago

    In this day and age, one thing that we all consider an indispensable part of our lives is smartphones. This device allows ...

    Read More
  • Deep sleep may act as fountain of youth in old age

    2 months ago

    Loss of sleep in the elderly may increase the risk of developing a wide range of mental and physical disorders such as ...

    Read More
  • Just 20 minutes of sleep can boost employees’ creativity

    3 months ago

    Does your boss nag and expect a lot from you? Here’s a solution to keep up to their expectations — take a ...

    Read More
  • Rooftop Gardening: Days of Babylon to our Current Life

    3 months ago

    Laila Karim The concept of ‘hanging gardens’ fascinated me from the second grade. It was a part of our first step of ...

    Read More
  • Exercise, walking may cut side-effects of chemotherapy

    3 months ago

    Walking or jogging either three times a week for 50 minutes or five times a week for 30 minutes may help patients ...

    Read More
  • Read