BB relaxes exporters policy, forex rules

Staff Correspondent

5 April, 2021 12:00 AM printer

Bangladesh Bank (BB) has relaxed the issuance of back to back letter of credits (LCs) or usance LCs with realisation clause for input procurements on behalf of exporters.

“It has now been decided that ADs may continue to issue back to back LCs/usance LCs with realization clause for input procurements on behalf of exporters,” said a BB circular on Sunday.

Prior to issuance of the circular, the facility was valid for the period up to December 31, 2020 which was extended to March 31, 2021. According to the circular, other instructions with regards to import trade transactions will remain unchanged.

The central bank also eased the foreign exchange regulations against the admissible inland transactions through their nostro accounts, with validity up to June 30, 2021.

“Given the ongoing situation, it has been decided that Authorized Dealers (ADs) may continue settlement of payments through their nostro accounts against the eligible inland foreign exchange transactions,” as per a BB circular issued on Sunday.