Siddique Islam

The central bank is now working to formulate a business-friendly monetary policy, which will be announced Thursday (January 31), a top central banker said.

Bangladesh Bank (BB) governor Atiur Rahman disclosed this when the newly elected Board of Directors of Dhaka Chamber of Commerce & Industry (DCCI), led by its President Md. Sabur Khan, met him at his office Monday.

"We've always announced accommodative monetary policy statement (MPS) aiming to facilitate the country's trade and business activities" deputy governor of the BB SK Sur Chowdhury told the FE after the meeting with the DCCI delegation.

He also said, the central bank is now trying to balance, in its second half-yearly MPS for the January-June period of this fiscal year (FY) 2012-13, the support for overall economic growth with price and external sector stability.

During the meeting, the leaders of DCCI urged the central bank for taking business-friendly policies to boost trade and commerce.

The central bank agreed with the DCCI proposal for the BB giving awards to at least 10 highest remittance senders to the country.

"We've sought cooperation from the DCCI in this connection," the BB deputy governor said, adding that there is no problem to reward at least 10 highest remittance senders.

The country's largest trade promotion organisation (TPO) also proposed to withdraw charges on clearing cheque and electronic fund transfer (EFT) to facilitate business activities across the country.

The DCCI hoped that the BB would withdraw the charges for reducing the cost of doing business in the country.

"We've decided to waive charges on clearing cheque and EFT for 'small amount' and the government receipts," Sur said, adding that a technical team is now working in this connection.

The DCCI also urged the central bank for taking necessary measures to bring down the interest rate spread between lending and deposit at 2.0 per cent from the existing level of 5.5 per cent, according to its six-page statement, which was placed at the meeting.

The central bank is now working to decrease the interest rate spread to bring it down to lower single digit from the existing level at 5.41 per cent.

On Sunday, the BB governor warned the bankers of regulatory actions if they fail to bring down the interest rate spread below 5.0 per cent from the existing 5.41 per cent by March 2013.

During the meeting, DCCI President Sabur Khan thanked the governor for establishing online banking service, bringing payment system under automation and establishing electronic fund transfer system.

He also thanked him for introducing national payment switch.

The DCCI chief also expressed his concern over frequent price hike of power and energy, negative increase in import of capital machinery and raw materials and government's borrowing from banks, according to a DCCI press statement.

Khan stressed on reducing source tax on profit of listed public limited companies in the stock exchange in order to attract investors. He also suggested for encouraging non-listed companies to be enlisted in the stock exchange.

He said that a fund could be allocated for company registration for the service- oriented entrepreneurs, who are willing to establish their businesses abroad. "It will create employment and enhance foreign exchange reserve."

Among others, deputy governors of BB Abu Hena Mohd. Razee Hassan and Ms. Nazneen Sultana, executive directors Ahsan Ullah, and S M Moniruzzaman also spoke on the occasion.

DCCI Senior Vice President Nessar Maksud Khan, Vice President Absar Karim Chowdhury, Directors Khairul Majid Mahmud, KMN Manjurul Hoque, Haider Ahmed Khan, FCA, Abul Hossain, Osama Taseer, Mohd. Iftekharuddin (Naushad), Rizwan-ur Rahman, M Abu Hurairah, Kh. Shahidul Islam, Hossain A Sikder, Alhaj Abdus Salam and Md. Shoaib Choudhury were also present in the meeting.