Regulatory Alerts2019-03-11
Added · Updated
Clarification on Cash LCAF for Transferable Letters of Credit under GFET-2018
The circular clarifies that cash LCAF refers specifically to Local Currency Advance Facility notes issued for imports other than those under non-project commodity loans, credits, or grants. This definition permits Authorized Dealers in Foreign Exchange in Bangladesh to open transferable letters of credit for such imports without seeking prior reference to Bangladesh Bank. The clarification applies to the provisions outlined in Paragraph 19(iii) of Chapter 7 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol.-1.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 11 Date: 11 March 2019 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Issuance of transferable letters of credit (LCs) under cash LCAF Paragraph 19(iii), chapter 7 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol.-1 permits Authorized Dealers (ADs) to open transferable LCs for imports into Bangladesh under cash LCAF without reference to Bangladesh Bank. This is to clarify that cash LCAF shall mean those LCAFs issued for imports other than under non-project commodity loans/credits/grants as referred to section iv, chapter 7 of GFET. Please bring the contents of this circular to the notice of all your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123
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