Bangladesh Keyword: foreign exchange

June 3, 2024

The Bangladesh Bank has implemented a crawling peg exchange rate system, which allows for adjustments within a specified range for a currency with a fixed exchange rate, for spot purchases and sales of US dollars. Effective immediately, a crawling peg mid-rate has been set at BDT117 per US$1. Scheduled banks are now permitted to buy […]

June 3, 2024

The circular addresses foreign exchange transactions and gives new instructions for foreign airlines and shipping companies. Foreign and non-IATA airlines now need to submit specific forms (Annexure-FA(I)) instead of certain appendices listed in the Guidelines for Foreign Exchange Transactions (“GFET”)-2018. Foreign shipping companies are required to submit different annexures (Annexure-FS(I), FS(II), FS(III), FS(IV)) instead of […]

November 2, 2023

In an effort to reduce the shortage of foreign currency, the Bangladesh Bank issued a directive to banks, instructing them to distribute remittances to recipients within a maximum of two days from when they are received from overseas senders. Although this rule has been in force since 2014, the Bangladesh Bank recently found a lack […]

September 28, 2023

To boost the inflow of remittances and allow for more flexibility, the Bangladesh Bank has granted permission to licensed payment service providers (“PSPs”) to facilitate the receipt of wage remittances from abroad in collaboration with globally-recognized online payment gateway service providers, banks, digital wallets, card networks, and foreign PSPs. To implement this, PSPs will be […]

September 6, 2023

The circular urges authorized dealers (“ADs”) in foreign exchange to establish an online platform for the convenience of non-resident Bangladeshis (“NRBs”) to open and manage non-resident investor taka accounts (“NITAs”). The circular underscores the significance of boosting foreign investment in Bangladesh and provides clear directives to ADs on creating a user-friendly digital interface to streamline […]

September 6, 2023

To enhance the country’s export trade, the government has taken the initiative to offer export incentives or cash assistance for the export of 43 specific products during the current financial year 2023-24 (1 July 2023 to 30 June 2024). Exporters will be eligible to receive cash incentives ranging from 1% to 20%, similar to what […]

July 4, 2023

Aiming to facilitate foreign exchange transactions related to foreign investments in Bangladesh, the Bangladesh Bank has decided that authorized dealers (ADs) are permitted to retain foreign currency received from foreign investors. ADs can open foreign currency (FC) accounts in the names of local companies, which will issue shares in compliance with regulatory instructions. Under the […]

June 1, 2023

When banks send remittances of income in favor of non-resident institutions, they have been deducting tax under Section 56 of the Income Tax Ordinance 1984 at different rates for different customers. In an effort to standardize tax deductions for digital marketing (income from ads on the internet and social media) and broadcast advertising (income from […]

May 3, 2023

EDF loans from the Bangladesh Bank are repayable by authorized dealer (AD) banks within 180 days from the date of disbursement, which can be extended up to 270 days. The circular specifies that for loans extended beyond the 180 days, the interest rate prevailing at the time of such extension will be applicable for the […]

March 31, 2023

In order to stop the long delays in the repayment of EDF loans, the Bangladesh Bank will charge penalty interest (compensation under Shariah-based Islamic banking) at 4% above the prevailing interest rate to authorized dealers (“AD”) on all overdue EDF loan repayment amounts for the period they are overdue. In addition, the circular specifies that […]

March 4, 2023

The Bangladesh Bank has instructed authorized dealer banks and money changers to verify the amount of foreign currency a customer has spent against their passport before endorsing fresh foreign currency. As per the circular, before releasing foreign currency under a traveler’s passport, banks and money changers must verify the number of dollars spent by the […]

March 4, 2023

Aiming to facilitate inward remittances, the threshold for having to declare inward remittances on Form C has been raised from US$10,000 to US$20,000 or its equivalent. In addition, no declaration is required for inward remittances sent by Bangladeshi nationals working abroad.

January 25, 2023

Bangladesh Bank provided clarification on the opening of NITAs in the name of NRBs. Per the circular, authorized dealers (“ADs”) should obtain the following documents and information from applicants: For opening NITAs in the name of non-resident foreign nationals or institutions, ADs should establish and distribute a unified set of documents to their branches at […]

July 21, 2022

Aimed to facilitate smooth transaction, Bangladesh Bank has decided that international cards (debit/prepaid) can be used for online payments of visa processing fees. In this context, banks may issue international cards in the name of officially designated by nominated agents. Generally, visa processing fees, among others, were collected through nominated resident agents of foreign embassies, […]