All authorised dealer (AD) banks have been directed to cash in 50% of the foreign exchange deposited as the exporter’s retention quota (ERQ). On Thursday (14 July), the Foreign Exchange and Policy Department of Bangladesh Bank issued a directive in this regard.
The directive states that in the conventional system, a certain portion of repatriated export earnings can be deposited as ERQ. Depending on the level of local value addition, the retention quota rate can be 15% or 60%. However, in the information technology sector, the rate is 70%.
In the same circular, the level of foreign exchange which can be deposited as the retention quota has been reduced by 50% to 7.50%, 30%, and 35% respectively. This will remain in force till 31 December.
