Bangladesh Keyword: foreign exchange

Circular No. 07 dated 13 April 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Interest Rates on Borrowings from the Export Development Fund (“EDF”)”
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 […]

Circular No. 05 dated 19 March 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Repayment of Loans obtained from the Export Development Fund (“EDF”)”
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 […]

Circular No. 01 dated 7 February 2023 issued by the Foreign Exchange Operation Department of the Bangladesh Bank on “Funds Endorsed against a Traveler’s Passport”
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 […]

Circular No. 03 dated 22 February 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Raising of the Limit for Declaration on Form C of Inward Remittances”
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.

Circular No. 02 dated 1 February 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Interest Rate on Borrowing from the Export Development Fund (“EDF”)”
March 4, 2023

The circular specifies that until further instruction, the Bangladesh Bank will charge an interest rate of 3.00% on EDF loans to authorized dealer banks while authorized dealer banks are to charge interest to manufacturer-exporters of 4.50%.

Circular No. 02 dated 8 January 2023 issued by the Foreign Exchange Investment Department of Bangladesh Bank on “The Simplification of Documentary Formalities for Opening Non-Resident Investors’ Taka Accounts (“NITAs”)”
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 […]

Department of Foreign Exchange of Bangladesh Bank circular No- 13, on “Remittances on account of visa processing fees by resident agents through International Card” Dated 13 July 2022
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, […]