BB relaxes payment rules for smooth onion supply


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

“To facilitate uninterrupted supply and stabilize the price of onion in commodity market, it has been decided that Authorized 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.

The instruction would be effective until December 31 this year.