FEPD Circular No. 08: Relaxation of foreign exchange regulations for trade transactions - extended facilities

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 08 Date: March 14, 2021 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Relaxation of foreign exchange regulations for trade transactions – extended facilities Please refer to FE Circular No. 30 of July 23, 2020, FE Circular No. 44 of October 06, 2020 and FE Circular No. 49 of November 18, 2020 in terms of which relevant policy supports have been extended till March 31, 2021. 02. Given the ongoing situation due to COVID-19, it has been decided to continue the policy supports for the following counts: (a) As per FE Circular No. 49 of November 18, 2020, time for repatriation of export proceeds is extendable to 210 days instead of 120 days from the date of shipment, with validity up to March 31, 2021. Now the facility shall be extended up to June 30, 2021. (b) As per FE Circular No. 30 of July 23, 2020, back to back LCs opened under supplier’s/buyer’s credit are extendable to additional 180 days within permissible rate of interest. The facility remains valid up to March 31, 2021 which shall be extended up to June 30, 2021. (c) As per FE Circular No. 30 of July 23, 2020, loan from Export Development Fund (EDF) is extendable to additional 180 days instead of 90 days for the period up to March 31, 2021. Now the facility shall be extended up to June 30, 2021. (d) As per FE Circular No. 44 of October 06, 2020, refinancing from EDF up to 180 days is allowable to settle import payments against back to back LCs established under supplier’s/buyer’s credit. The facility remains valid up to March 31, 2021 which shall be extended up to June 30, 2021. As usual, relevant instructions with regards to trade transactions shall remain unchanged. Please inform all your concerned constituents accordingly. Yours faithfully, (Md. Ali Akbar Faraji) General Manager Phone: 9530123