FEPD Circular No. 23: Discounting of direct and deemed export bills in foreign exchange out of own sources

Authorized Dealers in Foreign Exchange in Bangladesh are permitted to discount usance export bills, including direct and deemed exports, in foreign exchange using their own funds, provided the funds are not committed for other uses. This authorization supplements existing provisions allowing the arrangement of funds through correspondent banks, financial institutions abroad, or international financing institutions. All other instructions, including those regarding costs to exporters under FE Circular No. 19 dated 5 May 2019, remain unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 23 Date: 21 June 2020
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Discounting of direct and deemed export bills in foreign exchange out of own sources Please refer to paragraph 25, chapter 8 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET) read with Circular Letter No. 19, dated 7 August 2019 in terms of which Authorized Dealers (ADs) are allowed to arrange fund for discounting usnace export bills in foreign exchange through their correspondent banks, financial institutions abroad or international financing institutions.
2. To facilitate the transactions, it has been decided that ADs may discount usance export
(direct and deemed) bills in foreign exchange out of their own sources provided that the fund is not committed for otherwise use. Other instructions including cost to exporters in terms of FE Circular No. 19 dated 5 May 2019 shall remain unchanged. Please bring the contents of this circular to the notice of all concerned. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123

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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