Settlement of payment against inland LCs in foreign exchange

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