Bangladesh Bank (BB) on Sunday relaxed forex regulations to facilitate trade transactions in the wake of the coronavirus pandemic.
“Authorized Dealers (ADs) may allow exporters to increase the tenure of realization of export proceeds up to 60 days, as more time from specified period of four months from the date of shipment, for real grounds,” according to a BB circular issued today, reports BSS.
ADs shall immediately notify Foreign Exchange Operation Department or respective area offices of Bangladesh Bank with information on extension allowed by them such as names of exporters, EXP Nos, time extended including expected date of realization of payments, known reasons for extension and so on, the circular added.
The circular also said the consumption period of back again to back LCs opened under supplier’s or buyer’s credit could be extended, on banker-customer relationship, within the admissible rate of interest up to 180 days, as more time from permissible amount of 180 days, for real grounds necessary to settle the payments.
Bangladesh Bank will consider applications for extension of EDF loans for 180 days, from the prevailing extendable tenure of 90 days, to stay the payments against such loans on real grounds.
ADs may allow exporters to repatriate export bills at a low price on real grounds to up to 10% of FOB value without prior approval of Bangladesh Bank. ADs shall immediately intimate Foreign Exchange Operation Department or respective area offices of Bangladesh Bank with information on discount allowed by them such as for example names of exporters, EXP Nos, amount of discount, date of realization of discounted proceeds, reasons for discount and so forth.
The facilities will be applicable till September 30, 2020, the circular added.
Other instructions in relation to trade transactions shall remain unchanged.