BB relaxes foreign exchange transaction rules for onion traders

Bangladesh Bank (BB) has relaxed the foreign exchange transactions rules for onion traders by allowing them to open Letters of Credit (LCs) for imports of spice on 90 days deferred or usance basis under supplier’s or buyer’s credit terms.

“To facilitate uninterrupted supply and stabilise the price of onion in commodity market, it has been decided that authorised dealers (ADs) may open LCs for imports of onion on 90 days deferred or usance basis under supplier’s or buyer’s credit terms,” said a BB circular issued on Monday.

According to BSS, the instruction would be effective until December 31 this year.