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Hotels, resorts, restaurants, shopping malls and other businesses in Bangladesh will be allowed to retain up to 15% of their foreign currency earnings from foreign tourists and customers in foreign currency (FC) accounts, while the remaining amount must be converted into taka under existing rules.
The Bangladesh Bank’s Foreign Exchange Policy Department (FEPD) issued a circular on Sunday (October 25), sending the directive to all authorised dealer (AD) banks in the country.
According to the circular, businesses can retain up to 15% of foreign currency earned from selling goods and services to foreign tourists and customers through international cards or other approved payment systems. The remaining amount must be converted into taka in accordance with existing regulations.
Funds held in FC accounts can be used for legitimate foreign currency transactions through international cards, as well as for paying applicable VAT and taxes.
The central bank also instructed businesses to maintain the necessary facilities to accept international cards and comply with anti-money laundering and counter-terrorist financing (AML/CFT) requirements, along with customer identification and know-your-customer (KYC) guidelines.
The initiative is expected to make it easier for businesses to receive foreign currency from international visitors and customers and use the funds for legitimate international transactions.