Interest rate ceiling for short term permissible trade finance in foreign exchange

The document sets an all-in-cost ceiling for short term permissible trade finance in foreign exchange at a mark-up of 4.00 percent per annum over the benchmark rate, such as SOFR or Euribor, applicable to the relevant foreign currency. This directive applies to all Authorized Dealers in Foreign exchange in Bangladesh and remains effective until further instructions. All other existing instructions regarding this matter remain unchanged.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 04 Date: February 01, 2024
All Authorized Dealers in
Foreign exchange in Bangladesh
Dear Sirs,
Interest rate ceiling for short term permissible trade finance in foreign exchange Please refer to FE Circular No. 21, dated August 16, 2022 and FE Circular No. 27, dated September 28, 2022 regarding all-in-cost ceiling for short term permissible trade finance in foreign exchange.
02. To facilitate the foreign trade finance and considering the global market trend &
interest rate scenario, it has been decided to set all-in-cost ceiling per annum with mark-up of 4.00 percent over benchmark rate, e.g. SOFR, Euribor etc., applicable to the relevant foreign currency against short term permissible trade finance. All other instructions in this regard shall remain unchanged. You are advised to bring the contents of this circular, effective until further instructions, to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123

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This document amends: All-in-cost ceiling for short term permissible trade finance in foreign exchange, All-in-cost ceiling for short term permissible trade finance in foreign exchange

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