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

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