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Bangladesh Bank (BB) today relaxed foreign exchange regulations to facilitate trade transactions in the wake of coronavirus outbreak.
“Authorized Dealers (Ads) may allow exporters to extend the tenure of realization of export proceeds up to 60 days, as additional time from specified period of four months from the date of shipment, for bonafide grounds,” as per a BB circular issued today.
ADs shall immediately intimate Foreign Exchange Operation Department or respective area offices of Bangladesh Bank with details of extension allowed by them such as names of exporters, EXP Nos., time extended including expected date of realization of payments, reasons for extension and so on, the circular added.
As per the circular, ADs may allow importers to extend the tenure of submission of bill of entry up to 60 days, as additional time from specified period of four months from the date of payments, for bonafide grounds.
In this regard, ADs shall immediately intimate Foreign Exchange Operation Department or respective area offices of Bangladesh Bank with details of extension allowed by them such as names of importers, IMP Form Nos., time extended including expected date of submission of bill of entry, reasons for extension and so on.
The circular also said usance period of back to back LCs opened under supplier’s or buyer’s credit can be extended on banker-customer relationship within the admissible rate of interest up to 180 days, as additional time from permissible period of 180 days, for bonafide grounds required to settle the payments.
Bangladesh Bank will consider applications for extension of EDF loans up to 180 days from prevailing extendable tenure of 90 days, to settle the payments against such loans for bonafide grounds.
ADs may allow exporters to repatriate export bills at discounted price for bonafide grounds up to 10 percent 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 details of discount allowed by them such as names of exporters, EXP Nos., amount of discount, date of realization of discounted proceeds, reasons for discount and so on.
The facilities shall be applicable till September 30, 2020, the circular added.
Other instructions with regards to trade transactions shall remain unchanged.
(BSS)
