Posts

Import under Back-to-Back Arrangement in Bangladesh: Rules, Process and Bangladesh Bank Guidelines

-
Image
Back-to-back Letter of Credit (BTB LC) is one of the most important trade financing tools supporting Bangladesh’s export-driven economy. The mechanism allows export-oriented industries to import raw materials and accessories against confirmed export orders or export LCs without immediate cash outflow. This article provides a comprehensive guide on “Back to back LC Bangladesh”, strictly aligned with Bangladesh Bank regulations, especially FE Circular No. 33 dated 14 August 2025. Understanding Back to Back LC in Bangladesh A Back to Back LC refers to an import LC opened by an exporter on the strength of an underlying export LC or export contract. In Bangladesh, this facility is widely used by export-oriented industries operating under bonded warehouse licenses, enabling them to import inputs required for producing export goods. Import under Back to Back Arrangement Bangladesh Import under back to back arrangement in Bangladesh is permitted only for recognized export-oriented units. The ...
Post a Comment
Read more

Opportunity for Industrial Capital Machinery and Spare Parts Supplier and Importers in Bangladesh

-
Image
Bangladesh is entering a decisive phase of industrial transformation. Driven by infrastructure expansion, export diversification, energy projects, and private sector-led manufacturing growth, the demand for industrial capital machinery and spare parts is expanding at an unprecedented pace. Recent policy support from Bangladesh Bank, particularly allowing extended usance facilities for capital machinery imports, has further strengthened this momentum. Together, these developments are creating a significant opportunity for both overseas suppliers and local importers of industrial machinery and spare parts. This article explores the regulatory, financial, and market dynamics shaping this opportunity and outlines why Bangladesh has become an increasingly attractive destination for industrial equipment trade. A Growing Industrial Economy Bangladesh has traditionally been known for its ready-made garments sector, but the industrial landscape is now far broader. Steel, cement, pharmaceu...
Post a Comment
Read more

Understanding UPAS LC: Features, Benefits, and Costs

-
Image
    Introduction In international trade, the Usance Payable at Sight Letter of Credit (UPAS LC) is a pivotal instrument that balances the interests of both importers and exporters. It offers a combination of features from both usance and sight letters of credit. UPAS LC provides a flexible payment mechanism that facilitates smoother transactions across borders. This article explores the UPAS LC's characteristics, advantages, and associated costs, offering insights into its operational mechanics and impact on trade finance. What is UPAS LC? A UPAS LC, or Usance Payable at Sight Letter of Credit, represents a hybrid financial instrument used primarily in international trade. It operates under an agreement where the exporter can receive payment immediately upon presenting compliant documents, despite the letter of credit stipulating usance terms. This arrangement allows for prompt payment to exporters while extending the payment timeline for importers. Essentially, it mer...
Post a Comment
Read more

Unlocking the Power of Foreign Exchange Options

-
Foreign exchange (forex) options are powerful financial instruments that provide traders and investors with the flexibility to manage currency exposure, hedge risks, and speculate on currency movements. In this article, we'll delve into the world of forex options, exploring what they are, how they work, and their benefits and risks. Understanding Forex Options Forex options are derivative contracts that give the holder the right, but not the obligation, to buy or sell a specific currency pair at a predetermined exchange rate (the strike price) on or before the expiration date. These options are traded over-the-counter (OTC) or on organized exchanges such as the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE). There are two types of forex options: call options and put options. A call option gives the holder the right to buy the underlying currency pair, while a put option gives the holder the right to sell the underlying currency pair. Traders and investors...
Post a Comment
Read more

Hedging Foreign Exchange Risk During Ukraine-Russia War | Voice Of International Business

-
Image
The Ukraine-Russia War has shaken the entire world-economy heavily. Business strategies of different countries of the world have changed with the emergence of this war since February 2022. Economic power houses like USA and European Union imposed various sanctions on transactions with Russia. Therefore, this war created volatility in the prices of foreign currencies.   Business organizations as well as the general people have become the victim of this fluctuation in the foreign-exchange market. Smart business organizations around the world are using different derivative products of the foreign exchange market. Hedging is one of the most powerful tools in this derivative group. Here we will discuss about how you can hedge a foreign exchange risk involved for import in US Dollar during the present scenario of Ukraine-Russia war.   What is Hedging Hedging is the activity of minimizing the risk of financial losses by using different financial instruments/ derivatives. ...
Post a Comment
Read more

Is shipment made as per declaration?

-
Image
  For many grounds you may want to be sure about, is shipment made as per declaration. As a stakeholder in an international import-export trade transaction, it is a typical curiosity. Now the question is how you can be sure without being present on the spot? In this part of writing, we'll discuss what may be the reasons you'll want to know about it. Then we'll discuss the procedures to be confirmed that the exporter has shipped as per their declaration, examining different documents. This article is intended for exporters, importers, bankers, and other professionals dealing with import-export trade. Though we've discussed the export-import documentation in Bangladesh, the procedure is almost identical for other countries. Stakeholders in an International Import-Export Trade Transaction Usual stakeholders in an international import-export trade transaction are importers, exporters, and bankers. Moreover, persons directly operating the transactions on behalf of th...
Post a Comment
Read more