Dhaka, June 11 -- Bangladesh Bank (BB) has introduced a comprehensive policy framework aimed at expanding the use of alternative trade finance mechanisms, marking a significant step toward aligning the country's trade financing practices with evolving global standards.

The initiative seeks to provide greater flexibility to exporters, importers, and financial institutions while maintaining robust risk management and regulatory oversight, reports BSS, citing a BB circular issued Thursday.

The central bank noted that although Documentary Letters of Credit (LCs) remain a cornerstone of Bangladesh's international trade transactions, global trade practices are increasingly embracing complementary instruments such as Open Account Trade, Supply...