BB asks banks to encash by next working day

The Bangladesh Bank on Monday asked the authorised dealer (AD) banks to encash the value-added portion of export proceeds within the next working day.

It issued a notice in this regard, asking banks to encash the proceeds in Bangladeshi Taka before parking the eligible portion (the remainder) in a single pool for back-to-back payments.

The value-added portion’s encashment and the parking of the remainder in a single pool shall be executed by the following working day on receipt of export proceeds in nostro accounts of the designated ADs, said the notice. In another notice on the same day, the central bank said the banks repatriating the proceeds have to transfer the funds in foreign currency (FC) to exporters’ banks designated for export transactions, as per the notice.

In case of payment against export bill discounting or early payment arrangement in FC by other ADs or offshore banking operations, the FC fund shall be transferred to the designated ADs.

Export proceeds repatriated through banks of buying agents shall also be transferred in FC to exporters’ banks, read the notice.