Encashment of balances held in ERQ accounts and revision of its limit

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 14 Date: July 14, 2022 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Encashment of balances held in ERQ accounts and revision of its limit Please refer to paragraph 27, chapter 13 of the Guidelines for Foreign Exchange Transactions-2018, Vol.1 (GFET) in terms of which admissible percentage of repatriated export proceeds can be retained in exporters’ retention quota (ERQ) accounts in the names of relevant exporters. 02. Retention of foreign currency in ERQ accounts for long period without utilization is a cost to exporters since deposits in Taka bear adequate yield. In view of the situation, it has been decided that respective ADs shall encash 50 percent of the total balance held in relevant ERQ accounts immediately. 03. It has also been decided to revise retention limit out of realized export proceeds from 15 percent, 60 percent and 70 percent to 7.50 percent, 30 percent and 35 percent respectively. The revised limit will remain valid till December 31, 2022. Please bring the above instructions to the notice of your constituents. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123