BB relaxes rules for banks to facilitate import payments

The Bangladesh Bank has relaxed rules for banks to settle import payments of capital machinery, industrial raw materials, and government imports using funds obtained from their offshore banking units (OBUs). 

Banks can transfer funds from their offshore banking units to their onshore or domestic business units to fulfill import payment obligations, up to 40% of their total regulatory capital, according to the central bank.

The latest relaxation will be effective until 31 December this year.

"With the regulations eased, if banks have funds available in their offshore banking units, they can transfer more foreign currency to their onshore business units to settle import payments,"  said a senior official at the central bank.

Previously, the Bangladesh Bank permitted banks to allocate a maximum of 25% of their regulatory capital from their OBUs to domestic business units, enabling them to make import payments. 

The central bank had granted the benefit until 30 June this year.