Bangladesh Bank has revised its policies on advance payments for imports and exports, aiming to simplify procedures for businesses and streamline trade under evolving global dynamics.
In a circular released Tuesday, the central bank increased the limit for advance payments without repayment guarantees from $10,000 to $20,000. Additionally, it raised the cap on advance payments from Exporters’ Retention Quota accounts to $50,000, up from $25,000.
The decision has been met with approval from industry representatives, particularly those representing small and mid-sized importers who have long encountered delays and additional expenses due to lower payment ceilings.
According to several traders, the higher thresholds will enable faster settlements and reduced transaction costs.
The policy update aligns with Bangladesh’s ongoing efforts to enhance trade facilitation and reduce obstacles in international transactions amid an unpredictable global economy.
Analysts believe the measure will provide importers with added flexibility as businesses seek more efficient access to foreign products and raw materials.
“Raising the threshold is a pragmatic measure,” said trade analyst M S Siqquque to TIMES of Bangladesh.
“It reduces unnecessary compliance burdens and signals that the central bank is sensitive to the realities of global commerce.”
