Bangladesh Bank on Tuesday has barred transferring the value-added portion of export proceeds to other banks for settling the exporters' import liabilities.
The central bank issued a notice in this regard, saying that it has been decided that retained funds will be usable only by designated banks for the settlement of bona fide payment obligations of relevant exporters.
The value-added portion refers to the export proceeds that are available to exporters after their import bills for back-to-back letters of credit have been met.
Bangladesh Bank took the decision to maintain discipline in foreign exchange transactions.
In case of the fund remaining unused, banks will have to encash the amount in taka just after expiry of an admissible period of 30 days, the notice said.
However, the unused fund can be encashed before this time upon request from exporters.
Previously, the central bank had allowed designated banks to transfer the value-added portion of export proceeds to other banks for use in settling the respective exporters' import obligations.
