Bangladesh Bank has extended the retention (holding) period to 30 days for repatriating export income in foreign currency, to make transactions more flexible.
Foreign Exchange Policy Department of Bangladesh Bank issued a notification in this regard today (September 6, 2022) and sent it to Authorized Dealers (ADs) bank for immediate effect.
The notification stated that to make trade transactions flexible, it has been decided to extend the retention time to 30 days, from 15, for utilization of the fund to settle import liabilities of relevant exporters.
The fund may also be transferred to other ADs, within this prescribed time of 30 days, for settlement of import payments and/or EDF liabilities against admissible bulk imports of relevant exporters, the Bangladesh Bank circular said.
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It means, henceforth the exporting individual or organization will be able to hold dollars for up to 30 days, with which back-to-back letters of credit (LCs), other EDF and import liabilities can be settled.
At the same time, the saved income can be transferred to another bank.
Before transferring funds, ADs need to satisfy their payment obligations by documentary evidence. ADs transferring the fund will make foreign exchange available to relevant ADs through foreign currency clearing accounts maintained with Bangladesh Bank.
Source: United News of Bangladesh