Bangladesh Bank has doubled the ceiling for advance import payments to ease trade transactions and support importers amid rising costs.
According to a circular issued on Monday, importers can now make advance payments of up to $20,000 without repayment guarantees, compared with the earlier limit of $10,000.
The ceiling for payments from Exporters鈥� Retention Quota (ERQ) accounts has also been raised from $25,000 to $50,000. The central bank said all other conditions will remain unchanged.
ERQ accounts allow exporters to retain part of their foreign earnings in foreign currency for meeting business expenses abroad. By expanding the limits, BB expects to speed up settlement of trade bills, cut costs, and make import procedures more flexible.
BB officials said that it would particularly benefit small and medium-sized importers who often struggle with additional costs and lengthy settlement processes.