Bangladesh's $55B garment export industry runs on letters of credit — but Bangladesh Bank's FX reserves have tightened LC issuance, creating 15-30 day delays that strand factory owners between delivered goods and unreceived payment. For RMG manufacturers importing Chinese cotton or Indian yarn, gold DVP eliminates the LC bottleneck entirely: supplier deposits gold in Abu Dhabi escrow, materials ship to Chittagong, arrival confirmed, gold releases. Same mechanism works for shrimp, jute, and leather exporters settling with European buyers.
Request ConsultationWhen BDT payments are blocked by correspondent banking compliance, LCORE's gold DVP provides a neutral Abu Dhabi alternative. Bangladeshi commodity importers can deposit physical gold into DVP escrow -- commodity delivers -- payment in BDT confirms -- gold releases. 2-3 working days.
ADGM English Law governs. Lloyd's $200M insurance throughout. UAE geopolitically neutral -- not subject to US, EU, or UK sanctions regime.
Confidential. Min $5M. ADGM 28158.
Bangladesh is the world's second-largest garment exporter, with readymade garments (RMG) accounting for over 83% of total export earnings — approximately $45 billion annually. Woven and knitted garments, denim, knitwear, and home textiles flow primarily to the EU and the United States under EBA and GSP arrangements. Jute and jute goods represent a strategic natural fibre export for Russia, India, and Europe — Bangladesh grows approximately 40% of global jute supply. Frozen shrimp and fish from the Sundarbans delta and Bay of Bengal coastal aquaculture target EU, US, and Japanese seafood markets. Leather and leather goods from Savar-based tanneries export to European fashion buyers. Tea from Sylhet and Chittagong Hill Tracts competes in the commodity tea market. Bangladesh's commodity exports are heavily concentrated in labour-intensive manufacturing, making BDT settlement for raw material imports from China, India, and Pakistan a critical pain point that benefits from alternative settlement mechanisms.
The Bangladeshi taka (BDT) is not freely convertible, and Bangladesh Bank maintains strict controls over foreign currency outflows. RMG manufacturers importing raw materials (cotton, yarn, accessories) from China and India routinely experience LC delays of 15-30 days through correspondent banking chains — creating working capital pressure. Several Bangladeshi banks have had USD correspondent relationships restricted following AML enforcement actions related to the 2016 Bangladesh Bank heist ($81M SWIFT fraud), which dramatically increased global compliance scrutiny. Cotton and textile raw material importers from China struggle with multi-hop USD settlements. For large commodity transactions, multi-correspondent chains typically add 15-30 days and elevated KYC documentation demands. LCORE's gold DVP enables Bangladeshi commodity traders to structure import settlements outside the BDT LC framework, with Chinese sellers depositing gold in Abu Dhabi and releasing upon confirmed delivery to Chittagong port.