FEPD Circular Letter No. 31: Retention quota facilities against local delivery under back to back LCs

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 31 Date: August 16, 2022 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Retention quota facilities against local delivery under back to back LCs Please refer to paragraph 27(b), chapter 13 of the Guidelines for Foreign Exchange Transactions-2018, Vol.1 (GFET) regarding retention quota facilities to local manufacturer-suppliers against inland back to back letters of credit (BBLCs). While retaining foreign currency, Authorized Dealers (ADs) shall be ensured that foreign currency is to be credited to retention quota accounts of eligible suppliers after settlement of the amount against BBLCs. 02. This is to clarify that retention quota accounts can be credited up to the permissible limit in percentage of proceeds realized under inland BBLCs. Please bring the above clarification to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123