Affordable forex financing vital to trade and investment: ICCB

Affordable access to foreign currency financing is crucial to sustaining international trade, industrial production and investment amid Bangladesh's economic challenges, said International Chamber of Commerce (ICC) Bangladesh President Mahbubur Rahman.

He made the remarks at a workshop on 'Obtaining Import Financing in Foreign Currency �" Challenges and Solutions', jointly organised by ICC Bangladesh and Germany's ODDO BHF SE at a Dhaka hotel on Saturday.

Rahman said high inflation, foreign exchange constraints, sluggish private investment and global trade uncertainties were putting pressure on businesses. Tight monetary policy had also slowed private sector credit growth.

He highlighted the importance of Usance Payable at Sight (UPAS) letters of credit and Export Credit Agency (ECA)-backed financing in helping businesses import raw materials, capital machinery and advanced technology at competitive costs.

Such financing facilities could support industrial modernisation, infrastructure development, renewable energy expansion and export diversification, he said.

Referring to Bangladesh's graduation from the least developed country (LDC) category, Rahman stressed the need to improve export competitiveness, strengthen financial sector reforms and expand access to international financing.