Affordable foreign currency crucial for sustainable trade, investment: ICC Bangladesh

ICC Bangladesh President Mahbubur Rahman has said access to affordable foreign currency financing has become increasingly important for sustaining international trade, industrial production and investment amid Bangladesh's challenging economic environment.

He made the observation while delivering his closing remarks at the ICC Workshop on “Obtaining Import Financing in Foreign Currency–Challenges and Solutions,” jointly organised by International Chamber of Commerce (ICC)- Bangladesh, the world business organisation, and Germany's ODDO BHF SE at the Renaissance Hotel on Saturday.

Mahbubur said Bangladesh is facing inflationary pressures, foreign exchange constraints, subdued private sector investment and global trade uncertainties. Bangladesh Bank's tight monetary policy, aimed at containing inflation, has also contributed to slower private sector credit growth, according to a press release.

Highlighting the importance of innovative financing instruments, he said Usance Payable at Sight (UPAS) Letters of Credit enable importers to enjoy extended payment terms while ensuring timely payment to overseas suppliers.

Similarly, Export Credit Agency (ECA)-backed financing provides longer-term funding for importing capital machinery, advanced technology and industrial equipment at competitive costs.

He observed that these instruments could support industrial modernisation, infrastructure development, renewable energy expansion and export diversification.

Referring to Bangladesh's transition from Least Developed Country (LDC) status, Mahbubur stressed the need to strengthen economic resilience, export competitiveness, financial sector reforms and international financing capabilities.

He also emphasised sound risk management, regulatory compliance and closer cooperation among banks, regulators and international financial institutions.

He noted that Germany remains a major trading and development partner of Bangladesh, offering opportunities for cooperation in trade finance, technology transfer and industrial investment.

Mahbubur reiterated ICC Bangladesh's commitment to professional capacity-building through workshops and internationally recognised certification programmes offered by the ICC Academy and Walbrook Institute London, formerly The London Institute of Banking & Finance (LIBF).

Muhammad A (Rumee) Ali, chairman of the ICC Bangladesh Banking Commission, said bankers are facing increasing challenges and must exercise greater caution in selecting clients, ensuring proper due diligence and risk assessment.

Thomas Kuerten, director & senior regional manager of International  and Corporate Banking at ODDO BHF SE and Ataur Rahman, secretary general of ICC Bangladesh, also spoke at the closing ceremony.

The workshop was conducted by Karim Dolibois and Uschi Kirchner of ODDO BHF SE, focusing on UPAS Letters of Credit, ECA-backed financing, documentation and risk management.

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The Dhaka workshop was attended by 77 participants, including three representatives from KfW and one from the International Finance Corporation (IFC).

Meanwhile, ICC Bangladesh organised a similar workshop on Sunday at The Peninsula in Chattogram, with 35 bankers from 17 banks and 12 corporate clients sponsored by Eastern Bank. The same facilitators are conducting the technical sessions.

Mahbubur thanked ODDO BHF SE for sponsoring both workshops, appreciated Eastern Bank's support and expressed hope that the programmes would strengthen Bangladesh's international trade financing capabilities.