FEPD Circular Letter No. 23: Transactions against local deliveries in foreign exchange

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd Circular Letter No. 23 Date: 17 June 2020 Head offices/Principal offices of all Authorized Dealers in Bangladesh

Dear Sirs, Transactions against local deliveries in foreign exchange Please refer to paragraphs 40(a), 40(b) and 40(c), chapter 7 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol-1 in terms of which local deliveries are permissible under inland Back to Back Letters of Credit (BBLCs)/usance LCs/sight LCs. Refinancing from Export Development Fund (EDF) is also permissible against inland BBLC at sight basis for such local transactions in accordance with paragraph 4(iv), FE Circular No. 45 of December 31, 2017. 2. In view of above instructions, Authorize Dealers (ADs) are advised to provide acceptance of the delivery documents within stipulated time without any delay for complaint documents and arrange payment on the due date of maturity in terms of paragraph 41 chapter 7 of GFET, regardless of availability of export proceeds. In case of sight inland BBLC under EDF/sight LC against advance export proceeds, ADs shall exercise best practices to effect payments within the stipulated time against compliant documents without showing unnecessary excuses. Please inform all of your ADs branches and central processing centers for meticulous compliance of the above stated instructions, failure of which necessary actions shall be initiated, inter alia, in accordance with BRPD Circular No. 06 of March 12, 2014. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123