Masrur Riaz, Chairman and CEO of the private research organisation Policy Exchange Bangladesh, has said that many businesses are struggling to repay loans on time due to the rising value of the dollar and stricter import regulations, which have disrupted the import of goods and raw materials.

In a view exchange meeting with some prominent reporters on Tuesday, Masrur Riaz explained that over the past two and a half years, the dollar has depreciated by approximately 37%. At the same time, various import restrictions have been imposed, negatively impacting businesses that rely on importing goods for sale or raw materials for production. They are now under pressure.

He also said that the 37% depreciation of the dollar, combined with delays in importing raw materials, has hampered production.

Businesses have been unable to receive goods as per demand, and this problem began right after the recovery from the COVID-19 pandemic, leading to disruptions in the import of goods and raw materials for many businesses, making it difficult for them to repay loans on time, he added.

The former senior economist of the World Bank further mentioned that the Bangladesh Bank must maintain its efforts to prevent further increases in the dollar’s value. The central bank should prioritize stabilizing the balance of payments and gradually increasing the opening of Letters of Credit (LCs). This should be a key focus for the central bank.