Exporters can encash proceeds of value added portion in 15 days

The Bangladesh Bank has allowed banks to retain value-added portion of export proceeds in foreign currency for a maximum period of 15 days.

The central bank's Foreign Exchange Policy Department issued a circular in this regard on Wednesday (3 August). 

"The fund so retained will be used through same banks for settlement of import payments other than back to back obligations payable by same exporters within this period," the circular said.

Earlier on 29 May, Bangladesh Bank asked banks to encash value added portion of repatriated export proceeds by the following business day.

The new circular said, "Banks shall encash the fund compulsorily in taka just after expiry of 15 days."

"However, the unused fund can, on request from exporters, be encashed before this allowable time," the circular added.

According to business insiders, the new rules will facilitate exporters to avoid exchange loss for import payments with their own funds.