Bangladesh Bank on Sunday asked scheduled banks to settle payment against foreign letters of credit on quarterly basis if the import value of products is $5,00,000 or more.
To this end, the BB issued a circular to authorised dealer branches of all banks saying that late payment for external imports had been increasing in recent quarters that might cause a sudden large foreign exchange payment.
The local market would face an outflow of foreign exchange pressure at any time, if a number of companies settle their foreign LCs at a certain time, a BB official told New Age on Sunday.
Under the circumstances, the central bank took the initiative to avoid such risk and to keep stable the country’s foreign exchange market, he said.
The BB circular said that the banks on behalf of their importers would be able to settle their payment at a time, if the import value of products is less than $5,00,000 having tenure below six months.
It, however, said that the importers would be able to make their payment at least 10 per cent under the first instalment against the total value of import, but they will have to adjust the deferred payment with their next instalments.
The BB official said, ‘The country’s banking sector have been facing huge idle money in the last few months amid sluggish business. The banks will be able to use their idle money if they settle their payment against foreign LCs on quarterly basis.’
-With New Age input