Bangladesh Bank (BB) has extended the retention period for repatriating export income in foreign currency to 30 days for bringing greater flexibility in trade transactions.
Foreign Exchange Policy Department of BB issued a notification in this regard on Tuesday and sent it to Authorised Dealers (ADs) and banks to implement the decision immediately, reports UNB.
The notification stated that to bring flexibility in trade transactions, it has been decided to increase the retention time to 30 days from 15 days for utilisation of the fund to settle import liabilities of relevant exporters.
The fund may also be transferable to other ADs, within this prescribed time of 30 days, for settlement of import payments and/or EDF liabilities against admissible bulk imports of relevant exporters, the BB circular said.
It means henceforth, the exporting individual or organisation will be able to hold dollars for up to 30 days, with which back-to-back letters of credit (LCs) and other EDF and import liabilities can be settled.
At the same time, the saved income can be transferred to another bank.
Before transferring funds, ADs need to satisfy their payment obligations with documentary evidence. ADs transferring the fund will make foreign exchange available to relevant ADs through foreign currency clearing accounts maintained with Bangladesh Bank.
