BB Allows Banks to Retain Advance Export Proceeds for 30 Days

Bangladesh Bank (BB) has allowed the authorized dealer banks to retain export proceeds received in advance in dollars for 30 days for settling payment for the materials imported by the exporters under the back-to-back letter of credits (LCs).

After that period, the banks will convert the foreign currency into taka and transfer it to the exporters' accounts, said a BB circular issued today.

Earlier, the banks converted the foreign buyers' advance payments into taka and transferred them to the exporters' accounts. Then the exporters had to convert the money again into dollars for importing materials needed for production.