Regulatory Alerts2023-09-04
Added
Settlement of import liabilities out of export proceeds
Authorized Dealers in Bangladesh are prohibited from transferring retained foreign currency funds to other Authorized Dealers, restricting usage solely to the designated institution for the relevant exporter's import obligations. Unused funds must be compulsorily encashed into Taka immediately after the expiry of the 30-day admissible period, though early encashment is permitted upon request from exporters. These measures take immediate effect to maintain discipline in foreign exchange transactions.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 09 Date: September 04, 2023 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Settlement of import liabilities out of export proceeds Please refer to FE Circular Letter No. 32 of September 06, 2022 in terms of which value added portion of export proceeds is allowed to retain in foreign currency for settlement of import payments and/or EDF liabilities against admissible bulk imports of relevant exporters. The circular also allows designated Authorized Dealers (ADs) to transfer the fund to other ADs considering appropriate measures for bonafide use for settlement by respective exporters of import obligations. 02. To maintain orderly discipline in foreign exchange transactions, it has been decided that retained fund shall be useable only by designated ADs for settlement of bonafide payment obligations of relevant exporters. ADs shall, with immediate effect, refrain from transferring the fund to other ADs. In case of the fund remaining unused, ADs shall encash the same compulsorily in Taka just after expiry of admissible period of 30 days. However, the unused fund can, on request from exporters, be encashed before this allowable time. 03. Other instructions with regards to export transactions shall remain unchanged. ADs are advised to bring the contents to the notice of their relevant clientele. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123