FE Circular No. 15: Issuance of letters of credit with realization clause

Authorized Dealers are permitted to continue issuing back-to-back or usance letters of credit with a realization clause for input procurements on behalf of exporters. This authorization extends the facility previously valid until March 31, 2021, subject to compliance with instructions in FE Circular Letter No. 22/2020. Consequently, paragraph 19(ii) of chapter 7 in the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol-1 is modified, while other relevant instructions for import trade transactions remain unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 15 Date: April 04, 2021
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,

Issuance of letters of credit (LCs) with realization clause Please refer to FE Circular Letter No. 22 of June 11, 2020 in terms of which Authorized Dealers (ADs) were allowed to issue back to back LCs/usance LCs with realization clause for input procurements on behalf of exporters. The facility was valid for the period up to December 31, 2020 which was extended, vide FE Circular No. 43 of October 06, 2020, to March 31, 2021.
02. It has now been decided that ADs may continue to issue back to back LCs/usance
LCs with realization clause for input procurements on behalf of exporters, subject to compliance with the instructions contained in FE Circular Letter No. 22/2020. Accordingly, paragraph 19(ii),
chapter 7 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol-1 shall stand
modified.
As usual, relevant other instructions with regards to import trade transactions shall remain unchanged. Please inform all your concerned constituents accordingly. Yours faithfully, (Md. Shahidul Islam) General Manager (Current Charge) Phone: 9530123

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Lineage: Superseded

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Timeline

Amended 1 time · last 2025-02-09

2025-02-09BBDiscontinuation of Instructions for Issuance of Letters of Credit with Realization Clausesupersedes

This document amends: Issuance of letters of credit with realization clause

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