Bangladesh Bank has introduced a new policy permitting Bangladeshi shipping companies and airlines engaged in international operations to place their foreign currency account balances into interest-bearing or profit-generating renewable term deposits.
The central bank issued a circular on Sunday outlining the new facility, which allows Authorized Dealer (AD) banks to convert eligible foreign currency account balances into renewable term deposits in approved foreign currencies. The move is aimed at improving financial efficiency for internationally operating transport companies.
Officials said the policy is designed to encourage the repatriation of foreign earnings and strengthen inward remittance flows by offering better returns on foreign currency holdings. Under the revised framework, companies can now manage their foreign income more effectively through structured deposit instruments.
The tenure of these foreign currency term deposits will be determined by AD banks based on standard banking practices. However, Bangladesh Bank clarified that any interest or profit earned from these deposits must be paid in Bangladeshi Taka, converted at the prevailing spot exchange rate at the time of payment.
The new guidelines expand on earlier regulations issued under SPA Circular No. 2 dated April 10, 2023, which governed the operation of foreign currency accounts. The latest amendment specifically focuses on how balances can be invested and how returns are distributed.
Bangladesh Bank has instructed all relevant banks to inform eligible shipping and aviation companies about the updated facility. The central bank emphasized that all other existing rules governing foreign currency accounts will remain unchanged unless specifically modified under the new circular.
The policy is expected to provide greater flexibility for export-earning transport companies while supporting broader efforts to stabilize and enhance foreign exchange inflows in Bangladesh.
