Bangladesh Bank has asked authorized dealer (AD) banks to enacsh 50 per cent of the total foreign currency held in relevant export retention quota (ERQ) accounts immediately.
The central bank issued a circular in this regard on Thursday.
As per existing regulations, exporters can retain a portion of repatriated export proceeds in ERQ accounts.
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The rates of ERQ depending on local value addition are 15 per cent and 60 per cent. While the rate for IT sector is 70 per cent. However, in the same circular, the retention limits were halved to 7.50 per cent, 30 per cent and 35 per cent respectively.
The revised retention limit would be effective until December 31, 2022, the circular noted.
A senior banker hailed the circular and said that the new policy would make the foreign exchange market liquid.
