Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has relaxed further its foreign exchange (FX) transactions rules for opening letters of credit (LCs) against rice import, officials said.
Under the relaxations, commercial banks of Bangladesh are now allowed to open LCs against deferred or usance basis or under buyer’s credit for import of rice for 90 days.
Such relaxation will continue till the yearend on December 31, 2017, according to a notification, issued by the Bangladesh Bank (BB), the central bank of Bangladesh on Thursday.
“The central bank has taken the latest move aiming to keep the rice market stable by ensuring adequate supply of the essential to the market,” a BB senior official told BBN in Dhaka while explaining the main objective of the notification.
The BB said in its notification: “It has now been decided that LCs against deferred or usance basis or under buyer’s credit up to 90 days term for import of rice may be issued till December 31, 2017.”
Other instructions in this context shall remain unchanged, it added.
Earlier in June 19 this year, the central bank of Bangladesh advised the commercial banks to open LCs for importing rice with zero-margin on the basis of bank-client relationship.