Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has relaxed regulations, allowing banks to issue guarantees in favour of the authorities concerned in the country of import prior approval from it to facilitate export business.
Talking to the BBN, a senior official of the Bangladesh Bank (BB) said the central bank has foreign exchange regulations to help exporters issue bank guarantees in favour of competent authorities in the country of import for ensuring the quality of their exportable products.
He also said authorised dealer (AD) banks in foreign exchange of Bangladesh earlier issued such guarantee after receiving permission from the central bank.
The central bank issued a circular in this regard on Tuesday and asked all the ADs in foreign exchange in Bangladesh to comply with the relaxations properly.
“It is observed that exporters need to furnish guarantees to quality standard authorities/agencies in the country of import as a commitment to comply with their specified quality standards,” the circular said.
To facilitate the transactions, it has been decided that ADs may, on account of Bangladeshi exporters, issue guarantees in favour of such competent authorities/agencies in the country of import, it added.
“Such guarantee will be issued subject to usual norms, and export performance of the exporter and potential export expectation,” the central banker explained.