Build Hails Relaxation Of Forex Policies
Bangladesh Bank eases outward remittances
The Bangladesh Bank (BB) has relaxed regulations allowing industrial enterprises to remit their 1.0 per cent of sales revenue for different legitimate current payments without prior approval from the central bank.
Under the relaxations, legitimate current payments like audit fee, certification fee, commissioning fee, testing fee, valuation fee, etc. will be remittable within the purview of the 1.0 per cent limit, according to a notification, issued by the BB on Thursday.
The industrial entrepreneurs earlier were allowed to remit such payments through their nominated authorised dealer (AD) banks only for training and consultancy fees without prior approval from the BB, officials said.
The central bank, however, restricts payments which require permission from competent authorities including permission from Bangladesh Investment Development Authority (BIDA) for remittances of royalty, technical knowledge or technical assistance and franchise fees.
Meanwhile Business Initiative Leading Development (BUILD)- a platform for public-private dialogue among the government, trade and industry, in a statement praised Bangladesh Bank (BB) for taking steps towards easing foreign exchange regulations on trade transactions for the exporters of the country.
BB in a foreign exchange Circular No. 49 on November 18, 2020 said that all exporters irrespective of the sectors will be allowed a maximum 210 days to bring their export proceeds into the country due to the inauspicious impact in the wake COVID-19.
The extension will remain effective until March next year. In the earlier circular (FE Circular No. 30) on 23 July, 2020, only exporters of readymade garments and textile sectors were given opportunity to avail the facility.
In the 7th Financial Sector Development Working Committee (FSDWC) meeting of BUILD held on 7 August, 2019, a study named 'Financing Schemes and Available Credit Facilities for Export Competitiveness of Bangladesh' was presented.
The study focused on creating level playing field for all the exporters of the country to strengthen the competitiveness of the export oriented private sectors. In the study, BUILD suggested a specific recommendation to ease trade process and assist the exporters through stimulus package.
Exporters have been facing problems in repatriating their export proceeds on time in the ongoing pandemic. Several foreign buyers reportedly become unable to make their payments against imported items from Bangladesh. The non-RMG exporters, as a result, are facing problems to realize the export proceeds.
It is believed the extension of the tenure of realization of export proceeds up to March 2021 for all sectors will help the exporters of the country to revive amid the COVID-19 induced crisis.