Bangladesh Bank revises industrial raw materials import usance period

On August 18, 2025, the Bangladesh Bank (BB) permitted such facility for a usance period of up to 360 days, extending from 180 days earlier, which is valid until the last day of this year.

Under the revised guidelines, the permitted usance period will now be up to 270 days or the cash conversion cycle, whichever is earlier, according to a notification issued by the Bangladesh Bank.

A usance period is the agreed-upon time frame in international trade, often via letters of credit (LCs), which allows an importer a grace period to pay for goods after receiving them.

Before allowing such facilities, authorised dealer banks will have to ensure that the estimated cash conversion cycle reflects a realistic position, based on the customer's historical operating and transaction trends, according to domestic media reports.

The usance period will be determined in line with the statutory export proceeds repatriation period in case of back-to-back LCs.

ALCHEMPro News Desk (DS)