Bangladesh Bank (BB) has extended the deferred payment period, or usance, for imports of industrial raw materials, aiming to facilitate smoother trade transactions and support the country’s manufacturing sector.

The new directive, issued by the Foreign Exchange Policy Department on Monday, adjusts the credit period for importers.

The directive, signed by Md Harun-Ar-Rashid, Director of the Foreign Exchange Policy Department, took immediate effect for all authorised foreign exchange dealers in Bangladesh.

According to the directive, the central bank has decided that industrial raw materials, including back-to-back imports, agricultural implements, and chemical fertilizers, will now be importable for a usance (deferred payment) period of up to 270 days. This applies to imports under suppliers' or buyers' credit.

The circular specifies that the usance period shall be "270 days or the cash conversion cycle, whichever is earlier". This marks a shift from the previous temporary extension of 360 days, which was set to expire on December 31, 2025.

The central bank has instructed Authorized Dealers (ADs) to ensure that the estimated cash conversion cycle reflects a ‘realistic position’ based on the customer’s historical operating and transaction trends before allowing these facilities.

For back-to-back letters of credit, the usance period will be determined in alignment with the statutory export proceeds repatriation period. But, as per standard policy, this extended usance facility will not apply to imports financed under the Export Development Fund (EDF).

This decision follows earlier policy supports (FE Circular No. 08 and FE Circular Letter No. 27) that had temporarily extended the usance period from 180 days to 360 days to facilitate trade during 2025.

The new 270-day limit aims to balance the needs of industrial importers with the necessity of maintaining a realistic cash conversion cycle in the country's foreign exchange management.