Bangladesh Bank has allowed export facilitators to hold US dollars just like exporters. Export facilitators (buying agents) can save these dollars from their earnings. Bangladesh Bank is issuing a circular regarding this on Monday (January 13).
Currently exporters can retain export earnings as Export Retention Quota (ERQ), similarly buying agents are allowed to retain it as Agent Retention Quota (ARQ).
The circular has instructed buying agents to open accounts at authorized dealer branches. From now on, up to 10 percent of the income in foreign currency can be kept in these accounts. Buying houses play the role of intermediaries between foreign buyers and manufacturers of apparel products and textiles.
Officials of the concerned department of Bangladesh Bank say that although there is an opportunity for the exporters to keep a certain amount of their export income in the foreign currency account, this opportunity was not available for the buying agents. Because of which they have to face many problems to send commission to agents abroad. That is why this facility is provided.
Besides, about 70 percent of garment exports are done through buying agents. If they are facilitated, our exports will be easier.
The central bank's circular further states that the buying companies/firms should obtain appropriate permission from the competent authorities — if they are active members of trade associations of the concerned sectors and are applicable. But the retainable income must be in foreign currency.