The central bank has been instructed to cash in within a day after the arrival of export earnings in foreign currency. The Foreign Exchange Policy Division of Bangladesh Bank issued a circular in this regard on Sunday (29 May).
The circular also called for cashing in the local value-added portion of the required portion of the back-to-back debentures with export earnings before depositing the required portion in the single pool.
Bangladesh Bank says that cashing and single pool deposit must be made into the bank’s Nostro account (foreign currency account for transactions with foreign banks is ‘Nostro account’) within one working day of export earnings.
In another circular on Monday, it was mentioned that if the export earnings are repatriated through another bank, or if the export bill is discounted (financed against bills generated against export orders with fixed commissions) in foreign currency through another bank or offshore banking operation, then the foreign currency will have to be transferred to the exporter’s bank. The same measures have been applied in the case of repatriation of export value through buying agents.
It has also been mentioned in the circular that the cashable portion of export earnings should be converted into money within one working day and deposited in the exporter’s account.
