Regulatory Alerts2023-09-24
Added
Reinstatement of limits of Exporters’ Retention Quota (ERQ) accounts
The retention limits for realized export proceeds in Exporters’ Retention Quota (ERQ) accounts are reinstated to 7.5 percent, 30 percent, and 35 percent, replacing the previous limits of 15 percent, 60 percent, and 70 percent. This measure applies to relevant exporters and takes effect immediately. Authorized Dealers in Foreign Exchange in Bangladesh are advised to notify their relevant clientele of these changes.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.15 Date: September 24, 2023 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Reinstatement of limits of Exporters’ Retention Quota (ERQ) accounts Please refer to paragraph 27, chapter 13 of the Guidelines for Foreign Exchange Transactions-2018, Vol.1 (GFET) in terms of which admissible percentage of repatriated export proceeds can be retained in ERQ accounts in the names of relevant exporters. Afterward, FE Circular No. 14, dated July 14, 2022 depicts the encashment of balances held in ERQ accounts and revision of retention limit by 50 percent for relevant exporters till December 31, 2022. 02. It has been decided to reinstate the retention limit out of realized export proceeds of ERQ to 7.5 percent, 30 percent, and 35 percent from 15 percent, 60 percent and 70 percent respectively. ADs are advised to bring the contents of the circular, effective immediately, to the notice of their relevant clientele. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123