The central bank also permitted exporters to transfer the value-added portion of export proceeds to other banks for the settlement of import bills or liabilities of the Export Development Fund.
The Bangladesh Bank has allowed exporters to retain the value-added portion of export proceeds—the part of the export receipts available after import bills of exporters for back-to-back letters of credit are settled—in US dollars for 30 days instead of 15 days. The decision will help exporters tackle the losses from the USD-taka exchange rate fluctuation.
It had instructed exporters in May to sell their export proceeds to the same banks through which they ship goods as many of them sold the dollars to the lenders that offered the higher rate, creating indiscipline in the foreign exchange (forex) market.
The bank asked exporters in August not to retain the value-added portion for more than 15 days to make the domestic forex market stable.
The country’s forex market has been facing an unstable situation for several months due to high import bills, prompting the bank to ask exporters to encash their value-added amount within 15 days. The measure helped the banking sector receive additional US dollars.
As the volatility has eased to some degree recently, the central bank has extended the period for exporters to retain the greenback, according to Bangladeshi media reports.
Fibre2Fashion News Desk (DS)