Settlement of payment against inland LCs in foreign exchange

Authorized Dealers (ADs) are permitted to settle payments against inland LCs through their nostro accounts, deviating from the previous requirement to use Bangladesh Bank FC clearing accounts as per paragraph 3(c), chapter 3 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1. This authorization is granted to facilitate settlements amidst COVID-19 related disruptions. ADs are instructed to establish suitable arrangements with their correspondents abroad to ensure transactions incur minimum charges.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka. www.bb.org.bd
FE Circular Letter No. 14 Date: April 20, 2020 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Settlement of payment against inland LCs in foreign exchange Attention of the Authorized Dealers (ADs) is invited to paragraph 3(c), chapter 3 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which payment against permissible inland LCs in foreign currency as per paragraphs 35 and 40 respectively of chapter 7 ibid needs to be settled through Bangladesh Bank FC clearing accounts of the concerned ADs.
2. To facilitate settlement of inland LCs amid COVID-19 related disruptions, ADs
may settle the payments through their nostro accounts. Considering the small volume of transactions, ADs should have suitable arrangements with their correspondents abroad for the transactions with minimum charges. Please bring the contents of this circular letter, effective during banking operation in limited scale on general holidays, to the notice of your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123

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Timeline

Amended 2 times · last 2021-04-04

2021-04-04BBFEPD Circular Letter No. 06: Settlement of payment against admissible inland transactions in foreign exchangeamends
2020-06-24BBFEPD Circular Letter No. 25: Settlement of payment against inland LCs in foreign exchangeamends

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