Banks must inform BB before opening import LC worth $3m or above
Banking
28 July, 2022, 10:30 pm
Last modified: 28 July, 2022, 10:35 pm
U.S. one dollar banknotes are seen in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
The Bangladesh Bank has asked banks to inform it 24 hours before opening an import letter of credit (LC) worth $3 million or above – as part of its measure to save dollars amid volatility in the foreign currency market.
Earlier, there was a directive to notify the central bank if the LC value exceeded $5 million.
But in a circular on Thursday, the Foreign Exchange Policy Department of the central bank has brought the amount down by $2 million.
A senior official at the Bangladesh Bank said that the area of monitoring is being increased in a bid to reduce the import of unnecessary products.
"That is why the reporting limit has been reduced," he added.
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