Export and Import can be done without foreign currency

Bangladesh Bank has announced new policies for commercial activities in the counter-trade system. Accordingly, imports and exports can be done without foreign exchange. That is, commercial activities can be carried out with products in exchange for products.

On Sunday (March 10), the central bank’s foreign exchange and policy department issued a policy in this regard. For example, it is said that by importing a product of 100 dollars from a foreign company, another product of the same value can be exported to that company without paying money. These transactions will not require foreign currency or dollars.

According to the new policy, the price of imported goods in the country can be adjusted with the price of exported goods abroad. In this case, the country’s exporters, importers or traders can enter into an agreement with foreign companies for conducting import-export activities.

The local bank will manage the escrow account in the name of the foreign or domestic institution. The import price will be collected from the importer. The exporter will be paid the value of the exported goods with the status of that money.

The status of the escrow account will be regularly communicated with the foreign institution for coordination at specific times. If a foreign or domestic party wants to operate an escrow account outside, permission must be obtained from Bangladesh Bank.

IMP form should be reported to Bangladesh Bank for deposit of import money as escrow. As discussed, the export price payment with the money saved should be reported to the Central Bank in the EXP form. However, the import-export transaction cannot be settled in the counter-trade system. Economic analysts say. Trading in the counter trade system does not require any banking transactions. As a result, the new guidelines will play an effective role in expanding business in countries in which trade cannot be conducted due to underdeveloped banking systems.