Banks can now utilise 40% overseas op fund

The Bangladesh Bank has allowed the Domestic Banking Units (DBU) to collect funds up to 40 per cent from their offshore banking operations to settle the import payment of capital machinery, industrial raw materials and government purchases.

The central bank issued a notice in this regard on Sunday, extending the deadline for the facility till June 30 of this year.

Previously, the banks could collect funds from the OBU up to 25 per cent.

The banking regulator has taken the decision with a view to ease the pressure on the foreign exchange reserves.

The central bank first introduced the facility on July 14 of last year and the deadline of the facility ended on December 31 of last year.