Bangladesh Bank has simplified the foreign exchange reserve policy for exporters in specialized zones. From now on, 'Type B' and 'Type C' industrial enterprises in export processing zones, economic zones and high-tech parks will be able to reserve a part of their export earnings to pay back-to-back import liabilities. Bangladesh Bank issued a notification in this regard yesterday, Sunday.
'Type B' enterprises in specialized zones mean joint ownership by foreigners and Bangladeshis. And 'Type C' is a company with 100% Bangladeshi ownership. The notification states that at least 20 percent of the export earnings of these enterprises (25 percent in the ready-made garment sector) can be deposited as foreign currency.

It further states that export earnings can be saved in both back-to-back import liabilities and local value added. The value added portion can be kept for a maximum of 30 days. After 30 days, the unused amount will have to be cashed in Taka. Exporters who export without the back-to-back method can also keep it for up to 30 days to meet necessary expenses. During this period, the unused amount can be transferred to another bank and the import liabilities of the associate or affiliate institution of the specialized zone can be paid. The unused amount will be cashed as in the back-to-back method and the remaining amount will be transferred to the exporter's FC account.
Concerned parties believe that this step of Bangladesh Bank will bring policy parity between the specialized and non-specialized zones, increase efficiency in transaction activities and strengthen foreign exchange liquidity management.