On Feb. 20, 2025, BNG CB issued a letter notifying extension of the effective date of the circular on drawing arrangement policy as detailed above, to Jun. 1, 2025.
The letter also provides clarification re interpretation of words used in the circular.
Document dated Feb. 20, 2025, received from BNG CB Feb. 23, summarized Feb. 26.
On Jan. 19, BNG CB issued two circulars on forex transactions.
BNG CB issued two circulars regarding paragraph 2 and 3, and paragraph 4 of appendix 6/2 of the Guidelines for foreign exchange transactions (GFET) Vol. 1.
Drawing Arrangement Policy
In paragraphs 2 and 3 instructions are added to enhance transparency in transactions.
The changes relate to the policy regarding the establishment of drawing arrangement between an exchange house abroad and a bank operating in Bangladesh.
The policy framework will state that exchange house(s) shall have to mention source foreign currency, conversion rate and remitted amount in BDT for each remittance transaction in the disbursement instructions sent to banks in Bangladesh.
Authorized dealers (ADs) will have to mention source foreign currency, conversion rate, disbursed remittance and cash incentive amount in BDT in the receipt, SMS, or e-mail that is provided to the beneficiary during disbursement of remittance.
Wage Remittance
Amends drawing arrangement and security deposit for wage remittance (paragraph 4).
AD banks could previously use three modalities for drawing arrangements with foreign exchange houses: draft drawing, EFT (now pre-fund), and pin-code (now post-fund).
The draft drawing modality is now revoked, and banks must convert existing arrangements under this modality to pre-fund upon compliance with regulations.
Security deposit, minimum balance requirements for pre-fund modality are withdrawn.
Non-resident foreign currency account deposits adjusted via remittance disbursement.
Minimum balance requirement for NRT accounts under the post-fund modality is set at BDT 2mn, replacing the USD 25k equivalent; this follows the prevailing exchange rate.
For post-fund remittances, AD banks must obtain reimbursement in equivalent foreign currency within T+2 days, based on tie-ups with foreign counterparts.
Effectiveness
Changes are effective Feb. 1, 2025.
Feb. 2025 Implementation Date Extended
On Feb. 20, 2025, BNG CB issued a letter notifying extension of the effective date of the circular on drawing arrangement policy as detailed above, to Jun. 1, 2025.
The letter also provides clarification re interpretation of words used in the circular.
Document dated Feb. 20, 2025, received from BNG CB Feb. 23, summarized Feb. 26.
