RegAlert
2022-08-16

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All-in-cost ceiling for short term permissible trade finance in foreign exchange

The document sets an all-in-cost ceiling per annum for short term permissible trade finance in foreign exchange at a mark-up of 3.00 percent over the benchmark rate applicable to the relevant currency. Authorized Dealers in Foreign Exchange in Bangladesh must apply this ceiling, while continuing to use LIBOR as a benchmark rate until its usability ceases. All other applicable instructions regarding this matter remain unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 21 Date: August 16, 2022
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
All-in-cost ceiling for short term permissible trade finance in foreign exchange Attention of Authorized Dealers (ADs) is invited to FE Circular No 19 of May 05, 2019 and FE Circular No. 22 of June 21, 2021 regarding all-in-cost ceiling for short term permissible trade finance in foreign exchange.
02. Given the global market trends, it has been decided to set all-in-cost ceiling per annum
with mark-up of 3.00 percent over benchmark rate applicable to the relevant currency against short term permissible trade finance. As usual, ADs may continue to arrange finance with LIBOR as benchmark rate till its usability is ceased. All other applicable instructions in this regard shall remain unchanged. Please bring the contents of this circular to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123

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Lineage: Amended

FEPD Circular No. 19: Usance in…2019FEPD Circular No. 19: Usance interest rate against import under supplier's/buyer's credit (2019-05-05)FEPD Circular No. 22: Indicativ…2021FEPD Circular No. 22: Indicative cost for access to short term permissible trade finance in foreign exchange (2021-06-21)All-in-cost ceiling for shortterm permissible trade financ…2022-08-16 · this documentAll-in-cost ceiling for short term permissible trade finance in foreign exchange (2022-08-16)All-in-cost ceiling for short t…2022All-in-cost ceiling for short term permissible trade finance in foreign exchange (2022-09-28)Interest rate ceiling for short…2024Interest rate ceiling for short term permissible trade finance in foreign exchange (2024-02-01)
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Amended 2 times · last 2024-02-01

This document amends: FEPD Circular No. 22: Indicative cost for access to short term permissible trade finance in foreign exchange, FEPD Circular No. 19: Usance interest rate against import under supplier's/buyer's credit

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

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