Foreign exchange rules against inland transactions, policy for exporters relaxed

Bangladesh Bank has relaxed the foreign exchange regulations against the admissible inland transactions through their nostro accounts, with validity up to June 30, 2021.

“Given the ongoing situation, it has been decided that authorised dealers (ADs) may continue settlement of payments through their nostro accounts against the eligible inland foreign exchange transactions,” as per a circular issued by the central bank on Sunday, reports BSS.

As usual, ADs shall maintain suitable arrangements with their correspondents abroad for the payment settlements at minimum charges, the circular added.

Meanwhile, the central bank has also eased the issuance of back-to-back letter of credits (LCs) or usance LCs with realisation clause for input procurements on behalf of exporters.

“It has now been decided that ADs may continue to issue back-to-back LCs/usance LCs with realisation clause for input procurements on behalf of exporters,” said a circular.

Prior to issuance of the circular, the facility was valid for the period up to December 31, 2020 which was extended to March 31, 2021.

According to the circular, other instructions with regards to import trade transactions will remain unchanged.