The BB extended policy support till March 31 to cope with current circumstances
The Bangladesh Bank (BB) on Tuesday extended the effectiveness of several policy relaxations by six more months relating to foreign exchange transactions amid fears of a further deterioration in the coronavirus situation during the upcoming winter.
The relaxations, which have been extended till March 31 next year, were initially effective up to September 30 this year.
To this end, the Foreign Exchange Policy Department of the BB issued three circulars on the day.
The BB extended policy support till March 31 to cope with current circumstances, said a high official of the Bangladesh Bank.
Under the policy support, advance import payments of up to $5 lac can be made without repayment guarantees or approval from the central bank.
Raw materials, agriculture implements and chemical fertilizers can be imported for a period of 360 days instead of 180 days under supply or buyer’s credit schemes.
The circular allowed import of life saving drugs to up to 180 days instead of the current 90 days.
Banks can also open LCs with a realization clause during this period, the circular said.
Local bills in foreign currency can be settled through nostro accounts abroad instead of by the BB, the circular added.
Another circular allowed refinancing facilities, for the extended period, up to 180 days from the Export Development Fund for settlement of back to back LCs which were opened till September 2020 without financing from the Export Development Fund.
The BB in another circular exempted quarterly instalment repayments for permissible deferred payment imports.
Both exporters and importers said that it would help trade during the ongoing pandemic situation.