BB eases rules on encashment
The Bangladesh Bank (BB) yesterday relaxed rules regarding encashment of export proceeds in the local currency, taka, in order to encourage exporters to bring receipts.
In a circular, the central bank said it would allow encashment of export proceeds at the prevailing exchange rate of foreign currencies in due time even if there is delay in realisation of proceeds.
In March this year, the BB said banks would be able to offer prevailing exchange rates for dollars and other currencies in the case of realisation of export proceeds within four months or 120 days of the shipment of goods.
"It has now been decided that delayed export proceeds are allowed to be encashed in the prevailing exchange rate. This flexibility shall remain valid till December 31, 2023," the BB said in the notice.
Md Sarwar Hossain, assistant spokesperson of BB, said the decision was taken to encourage exporters.
The move comes at a time when Bangladesh is suffering from falling forex reserves and the realisation of export proceeds has fallen below the export figures released by the Export Promotion Bureau.
Exporters were demanding that authorities offer the prevailing market rate for dollar in case of encashment of receipts.
Mohammed Monsur, general secretary of the Bangladesh Fruits Vegetables & Allied Products Exporters' Association (BFVAPEA), welcomed the BB decision.
"It is a good decision. This will encourage exporters who are to yet to do so to bring their proceeds," he said while adding that the central bank should reimburse exporters who were not allowed to encash export earnings at the market rate.
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