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Export proceeds

BB extends both policy coverage, tenure

FE REPORT | November 19, 2020 00:00:00

Considering the Covid-19 pandemic, the central bank has allowed more time for the exporters to realise their export proceeds.

The tenure has been extended up to seven months instead of existing six months, and the coverage of the relaxed policy widened to all export sectors.

The extended period for realisation of the export proceeds will equally be applicable for all sectors, depending on the necessity, till March 31 next year, according to a notification issued by the Bangladesh Bank (BB) on Wednesday.

Earlier on July 23 last, the central bank had extended such policy, but only for the readymade garment (RMG) and textile goods exporters.

Under the relaxation, authorised dealer (AD) banks are empowered to allow all exporters to extend the tenure of realising the export proceeds up to 210 days instead of 180 days, according to officials.

"We've extended our policy support to all exporters instead of only RMG and textile goods ones considering the pandemic," a senior official at the BB told the FE while explaining the main objective of the latest policy relaxation.

He also said such extension will help offset the adverse impact of the Covid-19 pandemic on the overall export sector.

"We had allowed the exporters to realise their export proceeds up to 180 days instead of 120 days just few days after the first reported Covid-19 case in Bangladesh," the central banker noted.

The banks normally allow exporters to bring home the export proceeds within 120 days or four months in line with the existing forex regulations.

Earlier on March 19, the BB relaxed regulations to facilitate foreign trade covering both export and import to help businesses face the adverse impact of Covid-19.

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