BB eases rules on encashment of export proceeds

The Bangladesh Bank yesterday eased rules on the encashment of the value-added portion of repatriated export proceeds in order to bring flexibility to trade transactions. 

On May 29, the central bank asked banks to convert major export earnings of businesses into the taka immediately as it looks to increase the supply of US dollars in the economy.

The value-added portion refers to the export proceeds that are available to exporters after their import bills for back-to-back letters of credit have been met.

"It has been decided that banks may, on applications from exporters, retain the value-added portion of export proceeds in foreign exchange for a maximum period of 15 days," said the BB in a notice yesterday. 

The retained fund will be used through the same banks for the settlement of other import obligations payable by the same exporters within this period.