RegAlert

Rule · BB · 19 Mar 2020

FEPD Circular Letter No. 09: Retention of foreign currency in single pool for back to back import payments

fx

The circular clarifies that Authorized Dealers may settle back to back import liabilities using funds held in a single pool of repatriated export proceeds, regardless of whether those proceeds are associated with the specific import liabilities. This interpretation applies to the Guidelines for Foreign Exchange Transactions-2018 and permits the use of such funds on a maturity basis to minimize the involvement of the Authorized Dealer's own funds. Authorized Dealers are instructed to ensure their branches comply with these regulations to prevent cost burdens on exporters.

BangladeshBangladesh Bank

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular Letter No. 09 Date: 19 March 2020
Head offices/principal offices of all
Authorized Dealers in Bangladesh
Dear Sirs,
Retention of foreign currency in single pool for back to back import payments Please refer to paragraph 42(i), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which Authorized Dealers (ADs) can maintain repatriated export proceeds, net of encashment up to the portion of value addition, in foreign currency in a single pool. Funds from this pool are useable for different back to back import payments of the same exporting unit on maturity basis to keep minimum involvement of AD's own fund under the exchange position as well as to keep exporter free from debt burden.
2. It has come to the notice of Bangladesh Bank that the instructions as noted above are
not properly observed by ADs which result in cost burden to exporters. This is to clarify that the prevailing regulatory framework permits back to back liabilities to be settled out of funds held in single pool irrespective of export proceeds whether associated or not with import liabilities waiting for payment. You are advised to instruct all your AD branches to comply with the regulations meticulously. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123

Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.

Lineage: No known changes

RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.

FEPD Guideline of 2018Not in RegAlertFEPD Guideline of 2018 — Not in RegAlertFEPD Circular Letter No. 09:Retention of foreign currency…2020-03-19 · this documentFEPD Circular Letter No. 09: Retention of foreign currency in single pool for back to back import payments (2020-03-19)
amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it
The links and the sentences they come from (1)
Issued under
  • FEPD Guideline of 2018Not in RegAlert

    “Please refer to paragraph 42(i), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which Authorized Dealers (ADs) can maintain repatriated export proceeds...”

More like this from BB

We email you every new BB publication the day it's published.

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

In RegAlert: added · updated

FX rules change often. Get an email the day any regulator we track changes its foreign-exchange rules.