Revocation of General Authorization for Fund Arrangement Through OBUs for Export Bill Discounting

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd Circular Letter No. 19 Date: 07 August 2019 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Discounting of direct and deemed export bills in foreign exchange Please refer to paragraph 25, chapter 8 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET) in terms of which beneficiaries of usance export bills against direct and deemed exports of products produced in Bangladesh are permitted to avail bill discounting facilities through their own Authorized Dealer (AD) banks for immediate financing and in this context AD banks are allowed to arrange fund through their own OBUs, inter alia. Subsequently, placement of fund by offshore banking operation to domestic banking unit is restricted vide paragraph 7.3 of BRPD Circular No. 02, dated 25 February 2019. However, offshore banking operation can discount/purchase accepted usance/deferred export bills against direct and deemed exports of products produced in Bangladesh vide BRPD Circular Letter No. 09, dated 27 May 2019. In accordance with the revised instructions stated above regarding offshore banking operation, general authorization for arrangement of fund through OBUs contained in paragraph 25(b), chapter 8 of GFET, 2018 shall stand revoked. Please bring the contents of this circular letter to the notice of all your concerned constituents. Yours faithfully,

(Mohammad Khurshid Wahab) General Manager Phone: 9530123