Money exchange relief for exporters

Exporters can now make import payments from advance export earnings retained in foreign currency, saving them losses incurred during the money exchange process.

The Bangladesh Bank’s Foreign Exchange Policy Department issued a circular in this regard on Monday.

BB now allows authorised dealer banks to retain export proceeds received in advance in foreign currency for settling import payment under back to back letters of credit (LCs).

Before the circular, payment received in advance needed to be encashed in taka. For import payments other than back to back LCs, the fund could be retained in foreign currency for 30 days.

Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, welcomed the move, saying that this would benefit exporters.

“Many times buyers pay us in advance after confirming orders. It is converted and deposited into our taka account. When we need to make import payments, this taka is converted into dollars again. We had to incur losses twice during money exchange,” he told The Business Post.