Buying agents now can hold dollars like exporters
The Bangladesh Bank issued a circular today (13 January), instructing buying agents to open accounts at authorised dealer branches
Buying agents are now authorised to hold foreign currency accounts under the Agent's Retention Quota (ARQ), similar to the Exporter's Retention Quota (ERQ) for export proceeds.
The Bangladesh Bank issued a circular today (13 January), instructing buying agents to open accounts at authorised dealer branches. From now on, buying agents can credit up to 10% of their foreign currency receipts into these accounts.
Buying houses, which act as intermediaries between foreign buyers and garment manufacturers, primarily operate in the textile and apparel industry, particularly in countries like Bangladesh.
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An official from the relevant department of the Bangladesh Bank, speaking on condition of anonymity, told The Business Standard, "While exporters have the option to retain a portion of their earnings in foreign currency accounts, buying agents previously did not have this facility."
"This created challenges in sending commissions to foreign agents. Given that around 70% of our garment exports are through buying agents, providing this facility will make exports more efficient," he added.
The circular states that buying companies must have valid permissions from relevant authorities, if applicable, and be active members of trade associations. "Earnings must be in foreign currency," it added.
"Funds in ARQ accounts can be used for legitimate payments abroad, including payments via international cards," the circular specifies.
In Bangladesh, merchandise and service exporters are eligible to maintain ERQ accounts, with balances in these accounts available for legitimate business purposes.
