BB lifts 10% retention requirement on advance export earnings

Bangladesh Bank has removed the mandatory requirement for exporters to retain 10% of advance earnings received from foreign buyers, a move aimed at boosting cash flow in the export sector and facilitating smoother business operations.

The central bank issued a circular on Thursday announcing the new directive. Under the updated guidelines, safeguards have been put in place to ensure that transactions are genuine.

To qualify, exporters must have a confirmed Letter of Credit (LC) or a valid contract. They must also have a satisfactory export track record and the capacity to fulfill orders. Advance payments received under this scheme must be interest-free.

Industry representatives have welcomed the decision, saying it will make raw material procurement, production, and order fulfillment easier. At the same time, Bangladesh Bank’s continued oversight will ensure compliance with established rules and regulations.