Import Financing Source

Import involves outward remittance of foreign currency. It is commonly known that there are different sources of import financing and they are:-

1. CASH:

     a) Cash Foreign Exchange (balance in foreign exchange account of Bangladesh Bank)

     b) Foreign Exchange Account of Non-resident Bangladeshi.

2. Foreign Aid (Commodity aid, loan, grants) :

Developing Countries like Bangladesh sometimes borrow from friendly countries to meet import requirements. Such funds are repaid to the lending countries with agrees interest. Sometimes our government signs agreement on commodity loan with the government of donor countries or with our multilateral credit agencies. Exporters under such commodity loans are reimbursed in cash by the creditor (i.e. government or the loan giving agency) as soon as the goods are exported. The obligation for the payment of the term loan and interest are directly assumed by the importers government.

3. Barter(Exchange of Goods):

When a specific import is paid by a specific export without involvement of monetary transaction is called "Barter Trade". But the price is expressed in terms of a particular currency. Agreement of a Barter Trade is signed between two countries for a fixed period. In case of any imbalance after the expiry of the Barter Trade protocol, the imbalance is squared up by remittance from their own resources.


4. Special Trading Arrangement (STA)

Special Trading Agreements (STA) are signed in order to boost up export and import of two countries. Unlike Barter Trade Agreement. Special Trading Agreements are signed between the enterprises of the countries with the consent of respective governments.

5. Wage Earners Scheme:

Financing From wage earners fund.