BB clarifies exporters’ retention quota limit against local delivery
The Bangladesh Bank has clarified the exporters' retention quota limit against local delivery in foreign currency under back-to-bank letters of credit (LC).
The Foreign Exchange Policy Department of the central bank issued a circular in this regard on Tuesday.
According to the circular, the permissible limit in percentage of proceeds realised against delivery under inland back-to-back LCs can be credited to retention quota accounts.
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As per industry insiders, there was confusion regarding the applicable rate for ERQ against local delivery in foreign currency. Now, local suppliers can retain the same rate for ERQ applicable for exporters.
The retention quota limit has been reduced to 7.5% and 30% till 31 December 2022 from 15% and 60% respectively.
