Bangladesh Bank has increased the Exporter’s Retention Quota (ERQ) for the foreign exchange expense.
A circular issued by Foreign Exchange Policy Department (FEPD) on Wednesday said the Guidelines for Foreign Exchange Transactions-2009 (GFET) permits exporters to retain specific parts of their export earnings in foreign exchange, for utilization without prior Bangladesh Bank approval for bonafide business expenses abroad including maintenance of offices abroad, import of raw materials, machineries and spares.
“It has been decided to further widen this facility by enhancing the ERQs. Such quotas for exports of high domestic value added merchandise shall stand enhanced to 60 percent from existing 50 percent,” said the central bank.
As per circular, the ERQ for merchandise exports of high import contents (like apparels using woven fabric) shall stand enhanced to 15% from existing 10% while the ERQ for export of services shall stand enhanced to 60 percent from existing 50 percent of repatriated export receipts.
The other relevant instructions of section IV, chapter 13 of GFET shall remain unchanged, said the BB circular signed by Jagannath Chandra Ghosh, Deputy General Manager of the FEPD.
– Ittefaq Report
