Bangladesh exports garment items of 10 categories. But the south Asian nation is getting around 32% to 83% lower prices than the global rates. Geneva-based International Trade Center has recently found out why Bangladesh is getting lower prices and competitors higher.
The Russia-Ukraine war has affected the whole world. Bangladesh has also become victim of it, as inflation in the south Asian country is increasing now when its foreign currency reserve is depleting. But at the same time, the share prices of well-performing companies are decreasing and stocks of firms with small capital are rising.
It is said that Bangladesh makes one out of every three denim sold in Europe. Globally $64 billion worth denim jeans were sold in 2022 and Bangladesh holds around 24.6 percent share of the global denim market. But unfortunately, denim exports from Bangladesh fell 40 percent this year.
Bangladesh currently holds 6.8 percent share of the global garments market. In the last two years, the country’s apparel sector’s supply chain got disrupted due to the Covid-19 pandemic, and later by the Ukraine-Russia war.
Banks can make a maximum profit of Tk 1 by selling each US dollar such a rule was already there. But the importers and exporters are saying that the banks are making a profit of around Tk 15-20 per dollar. In this situation, Bangladesh Bank has again instructed banks to keep the dollar sale profit margin to a maximum of Tk 1. But why did this situation arise, why did the