BB extends export proceeds retention period to 30 days
The Bangladesh Bank (BB) has allowed banks to retain the value-added portion of export proceeds in foreign currency for a maximum period of 30 days.
At the same time, exporters can also transfer the dollars to other banks within the prescribed time, according to a circular issued by the central bank's Foreign Exchange Policy Department on Tuesday (6 September).
The new policy would also allow exporters to make payment to back-to-back loans, export development funds and import liabilities.
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As a result of the new guidelines, exporters will be able to pay the import liabilities of other banks with their own foreign currency without exchange losses.
The previous policy required exporters to encash the value-added portion of export proceeds by the next working day. The central bank extended the retention period to 15 days in a circular on 3 August.
