Exporters can now transfer funds from ERQ accounts to other banks
The central bank has allowed exporters to transfer funds from their exporters' retention quota (ERQ) accounts to other bank accounts.
According to a circular issued by the Bangladesh Bank's Foreign Exchange Policy Department today (9 February), exporters can also pay import liabilities with ERQ funds through other bank accounts.
Previously, exporters could spend a certain amount of export proceeds in the ERQ account only through the bank through which the export proceeds came.
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Exporters can retain a specific amount of export proceeds in their ERQ account for thirty days after completing their back-to-back LC payments.
Speaking to The Business Standard, a senior official of the central bank said if a garment exporter, for example, gets $100 in export proceeds, then after completing bank-to-bank LC payment, the exporter can keep only 7.5% of the remaining dollars in the ERQ account.
In case of jute products or fish, exporters can keep 30% in the ERQ account.
The foreign currency can only be kept in the account for 30 days. After that, the currency will be automatically encashed in taka.
