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BB extends foreign trade transaction policy support to June 30

BB extends foreign trade transaction policy support to June 30

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Bangladesh Bank (BB) has extended policy support to June 30 next from December 31, 2021 for external trade transactions considering the pandemic effect on economic activities.

A central bank circular said external trade activities of the country are found changing gears to pick up. To facilitate smooth transition, the BB has decided to continue extended supports for trade transactions to June 30.

The foreign exchange policy department of the BB issued the notification on Thursday.

The usance period (allowable period of time, permitted by custom, between the date of the bill and its payment.) for imports of industrial raw materials including back to back imports, and imports of agricultural implements and chemical fertilizers under supplier’s/buyer’s credit can be extended up to 270 days. Earlier the BB fixed it 180 days for external trade transactions.

The notification has also increased loans’ limit USD $ 25 million to $ 30 million till June 30, 2022 from the Export Development Fund (EDF) limit for member factories of BGMEA and BTMA, a garment sector organization.

Businessmen in the sector say the policy assistance provided by Bangladesh Bank will ease foreign trade and help revive economic activities.

Earlier on Tuesday, the leaders of the apparel sector organizations’ met with Bangladesh Bank Governor Fazle Kabir to discuss the current situation.

As per discussion the central bank issued the circular extending both the foreign trade transaction period and limit.