BB raises LC limit on coal import thru\\\' land-ports

The central bank has raised the ceiling on opening of any letter of credit (LC) without SWIFT advice for coal import through land-ports.

Under the new provision, any importer will be allowed to open an LC with the value ranging from US$ 7,500 to $ 10,000 without using the SWIFT mechanism for coal import through land-ports, officials have said.

"The central bank has relaxed the rules in line with the importers' requirement," a senior official of the Bangladesh Bank (BB) told the FE on Wednesday.

The BB issued a circular in this connection and asked all commercial banks to follow the instruction on opening of LC for coal import.

Coal importers welcomed the central bank's latest move, saying that it would help reduce the coal import cost.

"The price of coal is expected to fall slightly in the local market following relaxation of the foreign exchange rules by the central bank," Fala Uddin Ali Ahmed, president of the coal importers group in Sylhet, told the FE.

He also said Bangladesh imports around 2.1 million (21 lakh) tonnes of coal from Meghalaya of India each year through five land customs (LC) stations in the country's south-eastern region.

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