Written by The Banking Post
Bangladesh Bank has relaxed its rules on advance export payments in a move aimed at boosting exporters’ cash flow and easing trade settlement.
In a circular issued on September 25, 2025, the central bank waived the earlier requirement for exporters to retain 10 percent of export proceeds out of export payments received in advance from overseas buyers. The revised instructions introduce safeguards to ensure genuine transactions while giving exporters quicker access to funds.
Under the new guidelines, exporters shall have a confirmed LC or contract to execute shipments. The exporter’s past export performance shall be satisfactory, and they need to demonstrate adequate capacity to execute the export order. In addition, the advance payment shall be interest-free, among others.
As per business insiders, the relaxation will help exporters procure raw materials and maintain operations amid global trade challenges, while ensuring compliance through oversight by banks.
