As many banks were unable to clear import payments on time, thanks to the ongoing US dollar crisis in the country, the Bangladesh Bank on Wednesday asked them to clear the bills on time, or risk licence cancellations for their authorized dealer branches.
The bankers responsible will even face punishment for their failure to settle the import bills, said the central bank in a notice.
Foreign exchange reserves fell to $35.98 billion on October 19 in contrast to $46.19 billion a year ago, owing to higher import bills and lower export receipts and remittance flow.
The failure to settle import bills has sent the "add confirmation charge" higher, according to a Bangladesh Bank report.
Confirmation fees are a security mechanism that eliminates risks for exporters.
When exporters are not satisfied with the LC-issuing bank, mainly for the insolvency risks, political issues in the importing country or both, they may seek an additional guarantee for the LCs.
The confirmation is a definite and legal undertaking from the importer's bank to the exporter's bank.