Bangladesh Bank, which is the central bank of Bangladesh, has recently reset the ceiling of the US dollar loans from its Export Development Fund (EDF) to manufacturers and exporters for input purchases.
This is as per reports, which claimed the step to revise the ceiling of loans from export development fund (EDF) — EDF, established in 1989, facilitates access to financing in foreign exchange for input procurement by manufacturer-exporters even as authorised dealer banks can borrow US dollar funds from the fund against their foreign currency loans to manufacturer-exporters— was with the view to stop further fall in foreign currency reserves.
Given the existing circumstances — as per the central bank data, the reserves stood at US $ 31.24 billion on 5 April, down nearly 30 per cent from US $ 44.22 billion a year earlier, Bangladesh Bank data showed — the central bank reportedly maintained it had decided to reset the ceiling at US $ 10 million from the earlier US $ 15 million for input procurement under back-to-back LCs, against export orders.
