Regulatory Alerts2022-08-16
Added
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.
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