BB eases coal import by land without SWIFT
Tuesday, 2 February 2010
FE Report
The Bangladesh Bank (BB) has expanded the value limit in opening letters of credit (LC) for coal import through land ports only, officials said Monday.
In view of the new development, importers will be allowed to open LCs with value up to US$ 6,000 from $5,000 without the SWIFT mechanism for importing coal through land ports.
"We've relaxed the rules in line with the importers' requirements," a senior official at BB told the FE, adding the latest move may reduce coal import costs.
The central bank issued a circular in this connection Monday and asked all commercial banks to follow the instruction for opening LCs for coal import.
"The BB's latest move may ease the price of coal slightly on the local market," general secretary of Bangladesh Coal/Coke Importers Association Jahangir Jabbar told the FE.
Bangladesh imports around 0.8 million tonnes of coal from the Meghalaya state in India each year through seven to eight land ports and LC stations, market operators said.
The Bangladesh Bank (BB) has expanded the value limit in opening letters of credit (LC) for coal import through land ports only, officials said Monday.
In view of the new development, importers will be allowed to open LCs with value up to US$ 6,000 from $5,000 without the SWIFT mechanism for importing coal through land ports.
"We've relaxed the rules in line with the importers' requirements," a senior official at BB told the FE, adding the latest move may reduce coal import costs.
The central bank issued a circular in this connection Monday and asked all commercial banks to follow the instruction for opening LCs for coal import.
"The BB's latest move may ease the price of coal slightly on the local market," general secretary of Bangladesh Coal/Coke Importers Association Jahangir Jabbar told the FE.
Bangladesh imports around 0.8 million tonnes of coal from the Meghalaya state in India each year through seven to eight land ports and LC stations, market operators said.