Bangladesh Bank (BB) has revised the ceilings for advance payments against imports to facilitate international trade and streamline import procedures.
An importer can now make advance payments of up to $20,000 without requiring repayment guarantees, up from the previous limit of $10,000, BB said in a notice yesterday.
Similarly, the ceiling for advance payments from Exporters’ Retention Quota (ERQ) accounts has been increased from $25,000 to $50,000.
The ERQ allows Bangladeshi exporters to keep a portion of their foreign earnings in a foreign currency account, which they can use for business expenses abroad.
Industry insiders welcomed the decision, saying it would be particularly helpful for small and medium-sized importers.
On Monday, BB held a meeting with the country’s top importers to discuss ways to stabilise the prices of essential commodities amid high inflation.
Importers requested policy support to ease imports, while assuring the central bank governor that they would work to keep prices stable.
The revised limits will allow importers to settle payments more quickly and at lower costs, reducing both time and additional expenses.
The policy update is seen as a part of broader efforts to boost trade efficiency and simplify global transactions in the face of ongoing global economic challenges.
Experts described the move as a timely step in line with the growing demand for flexible trade policies.
