Bangladesh Bank streamlines foreign exchange rules for imports

Bangladesh Bank has issued a consolidated circular incorporating the latest foreign exchange regulations governing import transactions.

The circular combines all foreign exchange regulations related to imports issued over the past year and will remain in force for one year from Thursday, according to the central bank.

At the same time, all previous instructions related to imports will be scrapped, it said.

Only the reporting formats will remain unchanged.

The new framework includes provisions on import trade, online reporting, letters of credit (LCs), permitted payment methods, advance remittances, submission of bills of entry, supplier’s and buyer’s credit, settlement of import liabilities and back-to-back LCs.

It also incorporates regulations covering alternative trade financing arrangements, digital processing of import documents, retention of export proceeds in foreign currency for import payments, inland LCs in foreign currency, specialised and export processing zones, and the import of gold, silver, jewellery and foreign currency notes.